Are teachers underpaid or overpaid? That’s a surprisingly tough question to answer.
The Economic Policy Institute says that the “teacher wage gap” keeps hitting all-time highs. Last year, they reported that teachers made 27% less in weekly wages than other “similar” professionals.
But friends don’t let friends cite the EPI data uncritically. Why? Lots of reasons…

First, do you get paid in “weekly wages?” I don’t. Slightly more than half of all workers are paid an hourly wage. Their income is directly tied to how much they work. Other workers—including teachers—get an annual salary regardless of how much they work. Regardless, the use of “weekly wages” should be your first red flag that the EPI calculations are a little funny.
Second, who are “similar” workers to teachers? EPI uses, “standard regression techniques to control for systematic differences in age, education, state of residence, and other factors known to affect wage rates.” In practice, teachers are one of the most well-educated occupations in the country, meaning EPI is effectively comparing teacher salaries with those of dentists, physical therapists, pharmacists, and economists. In fact, using the same EPI methodology, Andrew Biggs has found that nurses and firefighters are dramatically overpaid. Why? Because, while EPI is assuming that all educational credentials are created equal, the market values different jobs and degrees differently, and teaching degrees are on the lower end.
But third, and most importantly, the EPI data don’t tell us what happens to actual teachers when they enter and exit the profession. If they are correct, and teachers are earning far less than they should, then teachers should see a huge pay increase when they leave the profession.