Teacher compensation is one aspect of school organization often overlooked in reform efforts aimed at improving student achievement. This paper describes how teacher compensation systems have been structured in the United States since the 1800s to meet the social and educational needs of the time. Current systemic reform efforts suggest the need for another shift in the structure of teacher pay. A well-designed pay system has the potential to act as a powerful incentive for teachers to develop the classroom skills and knowledge necessary to help students achieve at higher levels.
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