"Do Public Schools Hire the Best Teachers?"

3. Public schools do not exhibit a marked preference for teachers whose academic backgrounds signal strong cognitive ability and command of subject matter. Analysis of the experiences of new college graduates during their first year on the labour market shows that graduates of more selective colleges are no more likely to succeed in obtaining a teaching position (if they seek one) than are applicants from the least selective schools.7 Among applicants for secondary school positions, an education degree is as helpful as a subject area degree. While it is true that schools are more likely to hire graduates with good college grades, there is no adjustment for the overall quality of the institution at which those grades were earned.

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2. Changing the incentives facing school administrators might lead them to reconsider their priorities when hiring new teachers. The private sector, despite paying salaries substantially below those in most public school systems, employs disproportionately many teachers with strong academic records. This appears to be due, in part, to the greater emphasis on academics within these schools. Increased parental choice in the public sector might have similar results.

by Dale Ballou (pdf file)

I've always wondered why, here in Westchester, Ivy Leaguers & people with Ph.D.s, etc., are teaching for lower pay in private schools instead of for higher pay in the public schools.