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Union Reform, Performance Pay, and New Teacher Supply: Evidence from Wisconsin's Act 10

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  • E. Jason Baron

Abstract

This study examines the impact of performance pay on teacher selection. I exploit a shift toward performance pay in Wisconsin induced by the enactment of Act 10, which gave school districts autonomy to redesign their compensation schemes. Following the law, half of Wisconsin school districts eliminated salary schedules and started negotiating pay with individual teachers based on performance. Comparing the quantity of teaching degrees in Wisconsin institutions before and after Act 10, and relative to those in similar states, I find that Act 10 led to a 20 percent increase in teaching degrees. This effect was entirely driven by selective universities.

Suggested Citation

  • E. Jason Baron, 2021. "Union Reform, Performance Pay, and New Teacher Supply: Evidence from Wisconsin's Act 10," AEA Papers and Proceedings, American Economic Association, vol. 111, pages 445-449, May.
    • Handle: RePEc:aea:apandp:v:111:y:2021:p:445-49
    DOI: 10.1257/pandp.20211039
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    Cited by:

    1. Kemp, Jack, 2022. "The Educational Impact of Weakening Teachers’ Unions : Evidence from Wisconsin," Warwick-Monash Economics Student Papers 39, Warwick Monash Economics Student Papers.

    More about this item

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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