In this paper we use data from household surveys of 12 Latin American
countries to assess how teacher salaries compare to workers in other o
ccupations. The results show great variability from one country to ano
ther, ranging from an apparent underpayment of teachers in Bolivia by
35% relative to the control group, and a respective overpayment of 65%
in Colombia. However, when statistical controls are introduced for th
e differential education, hours worked and gender composition between
teachers and the comparison group, much of the earnings differential b
etween the two groups disappears. On the basis of this finding, we can
not support the position that teachers are either overpaid or underpai
d. Copyright (C) 1996 Elsevier Science Ltd