A simple Google search provides 34 million results on this subject. As expected there are studies & articles on both sides of the issue. Here is the first result...
International Study Links Higher Teacher Pay and Teacher Quality
http://neatoday.org/2012/01/04/international-study-links-higher-teacher-pay-and-teacher-quality/
Let me say that if you are a state like North Carolina which has a large number of teachers leaving the profession due to pay then you have an issue. We have young teachers regularly leaving teaching to go to neighboring states that pay $10K more. Remember the principle of a free labor market where employers compete to get the best employees with higher compensation -- well it also takes place in the teaching profession. If you want the best employees than you need to at least meet the salaries of direct competitors.
Then how come kids today are dumber?
If your premise is correct, then we should see teachers that under-perform being fired. We don't see that.
Maybe the disconnect is that the consumers of education...the parents and the students....really don't have a say in who gets hired, maybe indirectly they do, but not directly.
