An analysis of the relationship between teacher shortages and salary schedules in the public schools. It is shown that the problem facing the schools is not so much a shortage in the total numbers of teachers available as it is a problem of shortages of well-qualified teachers in specific subject-matter areas. What is needed is a salary schedule which recognizes the existence of the professional opportunities outside of teaching for teachers with certain subject-matter skills. A salary schedule with subject-matter pay differentials would be an effective and relatively inexpensive way of filling specific teacher shortages in the short run and of achieving, in the long run, a better balance of subject-matter specialties among teachers in training. The administrative problems attending the introduction of such a schedule are discussed, and it is concluded that they can be resolved without insuperable difficulties.