please only answer question 3 in detail

Targeting Teachers' Pay The pay schedule shown in Exhibit 6.13 is typical of many pay plans for teachers it contains steps by which a teacher's salary increases with each year of experience as well as with additional university credits beyond a teaching certificate EXHIBIT 6.13 Toronto Teachers' Pay Grid ($) as of September 1, 2014 LEVEL OF EDUCATION NO. OF YEARS TEACHING GROUP GROUP II GROUP III GROUP IV Step 0 $45,709 $47.834 $51.738 $55,404 Step 1 48.124 51,371 55,213 58,410 Step 2 50,923 53,297 58,887 61,985 Step 3 53,722 56,230 62,553 65,573 Step 4 56,909 59,532 66,425 69,736 Step 5 60,089 62.863 70,285 73,899 Step 6 63,273 66.173 74.150 78,055 Step 7 66,467 69.477 78,015 82,226 Step 8 69,652 72,794 81,877 86,381 Step 9 72,834 76,107 85,746 90,545 Step 10 89.614 94.707 76,021 79,414 Click here for a description of Exhibit 6.12 Say Jane begins teaching in September of the current year She has a bachelor's degree (Group III) and no experience She will earn $51,738 dunng the current school year Next year she will move up one step in the new schedule and eam $55 213, a raise of $3,475 or 6.7 percent Once she has received her master's degree or qualified as a subject specialist she will move over to the next column (Group IV) Otherwise, she will stay in the Group Ill column and advance one step each year until she reaches step 10, when she tops out. Note that she will receive the step increase as well as any entire schedule increases that the school board gives each year So any increase to the entire schedule translates into a larger increase for those teachers currently being paid according to the schedule Questions Page 128 1 Although the stepped salary schedule has many features of a knowledge-based pay system, not everyone agrees. Is this a knowledge-based pay system? How might you change it to make it more like the person-based plans discussed in this chapter? What features would you add/drop? 2. In the pay scale in the exhibit, notice that the column differentials increase with years of experience, for instance, the difference between Group III and Group IV at one year of experience is $3,197, whereas the difference at year 10 is $5,093. What message do these increasing differentials send to teachers? What pay theories address this issue? How would these differentials affect teacher behaviours? How would they affect school district costs? 3. Calculate the size of the pay differential for increased seniority versus increased education What behaviours do you believe these differentials will motivate? In other words, what pays better growing older or taking courses