Discrimination in the market for public school teachers

We seek to provide an answer to the question, ‘How much is required to induce white teachers to teach in black schools?’ using cross section data from the Coleman Report for 1965. The conceptual framework underlying estimation is a model of the spatial distribution of teachers based on the theory of equal advantage. School characteristics, including student racial composition, intelligence of students, student motivational indicators and neighborhood hazards are found to be important sources of real wage variation in the teachers' market. The estimates imply that a minimum increment of $300 (and probably more) was required for average white teachers to accept average black teachers' school characteristics in 1965.