Abstract: | This study examines the effectiveness of paying teachers in large urban areas a salary differential, also known as “combat pay,” for teaching at racially isolated or all-minority schools. In a selected sample of seven racially isolated schools (two elementary, three junior, and two senior high schools), “combat pay” was found not to be an effective method for either attracting or retaining high quality teachers. The study also finds that the types of teachers “purchased” with this incentive program are more a function of supply side changes (new, young, inexperienced, probationary teachers looking for employment, or teachers from similar “quality” school sites) than demand side changes (older. more experienced regular teachers attracted to the program because of the salary increment). Alternative uses of these funds for purposes such as reducing class size, improving working conditions, and other nonpecuniary benefits might be more effective in meeting district objectives. |