Your doubling the salary for teachers due to tenure is questionable. The reason tenured professors don't quit is only partly due to tenure, also due to the fact that they find being a professor more interesting than the other work. Regular (grade-school to high-school) teachers don't exactly have tenure (though for those in most unions it is close), and they probably don't have the same employment options outside the profession.
It's certainly questionable, I didn't mean to imply it was more than a rough guess. It's true, professor jobs at research universities have an "interestingness" premium, so part of the multiple comes from that.
On the other hand, lack of external employment options makes tenure MORE valuable, since it raises the risk premium the teacher would demand to quit the tenured job.
Since my financial math is rusty, I won't try to compute the actuarial values of these revenue streams, however.
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Your doubling the salary for teachers due to tenure is questionable. The reason tenured professors don't quit is only partly due to tenure, also due to the fact that they find being a professor more interesting than the other work. Regular (grade-school to high-school) teachers don't exactly have tenure (though for those in most unions it is close), and they probably don't have the same employment options outside the profession.
I'd give a multiple of 1.2.
It's certainly questionable, I didn't mean to imply it was more than a rough guess. It's true, professor jobs at research universities have an "interestingness" premium, so part of the multiple comes from that.
On the other hand, lack of external employment options makes tenure MORE valuable, since it raises the risk premium the teacher would demand to quit the tenured job.
Since my financial math is rusty, I won't try to compute the actuarial values of these revenue streams, however.