Teacher Salaries and Graduation Rates: Correlations Across U.S. States and Demographics

This study examines the association between average teacher salaries and high school graduation rates across U.S. states during the 2018–19 academic year, with a focus on both racial/ethnic groups and vulnerable student populations. State-level graduation outcomes were analyzed for White, Asian, Black, Hispanic, and American Indian/Alaska Native students, as well as for economically disadvantaged students, students with disabilities, homeless students, foster care students, and students with limited English proficiency. Using Pearson correlation coefficients, the study assessed whether higher teacher salaries were consistently linked to improved graduation rates across these diverse groups. Findings indicate moderate positive correlations for Asian, Black, and Hispanic students, suggesting that higher teacher pay may support stronger graduation outcomes for these populations. In contrast, weak or negligible correlations were observed for White and American Indian/Alaska Native students, and negative or near-zero correlations emerged for economically disadvantaged students, students with disabilities, homeless students, and foster care students. These results suggest that while competitive teacher compensation may contribute to improved outcomes for some student groups, salary increases alone are insufficient to address longstanding disparities affecting vulnerable populations. A more comprehensive policy approach—pairing competitive compensation with targeted academic, social-emotional, and wraparound supports—may be necessary to promote equitable graduation outcomes across states.