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Teacher Mobility Responses to Wage Changes: Evidence from a Quasi-natural Experiment

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  • Torberg Falch

Abstract

This paper utilizes a Norwegian experiment with exogenous wage changes to study teachers' turnover decisions. Within a completely centralized wage setting system, teachers in schools with a high degree of teacher vacancies in the past got a wage premium of about 10 percent during the period 1993-94 to 2002-03. The empirical strategy exploits that several schools switched status during the empirical period. In a fixed effects framework, I find that the wage premium reduces the probability of voluntary quits by six percentage points, which implies a short run labor supply elasticity of about 1 1/4 .

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  • Torberg Falch, 2011. "Teacher Mobility Responses to Wage Changes: Evidence from a Quasi-natural Experiment," American Economic Review, American Economic Association, vol. 101(3), pages 460-465, May.
    • Handle: RePEc:aea:aecrev:v:101:y:2011:i:3:p:460-65
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    1. Clotfelter, Charles & Glennie, Elizabeth & Ladd, Helen & Vigdor, Jacob, 2008. "Would higher salaries keep teachers in high-poverty schools? Evidence from a policy intervention in North Carolina," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1352-1370, June.
    2. Bonesronning, Hans & Falch, Torberg & Strom, Bjarne, 2005. "Teacher sorting, teacher quality, and student composition," European Economic Review, Elsevier, vol. 49(2), pages 457-483, February.
    3. Torberg Falch, 2010. "The Elasticity of Labor Supply at the Establishment Level," Journal of Labor Economics, University of Chicago Press, vol. 28(2), pages 237-266, April.
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