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Public and Private Employer Learning: Evidence from the Adoption of Teacher Value Added

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  • Michael Bates

Abstract

Informational asymmetries between employers may inhibit optimal worker mobility. However, researchers rarely observe shocks to employers’ information. I exploit two school districts’ adoptions of value-added (VA) measures of teacher effectiveness—informational shocks to some, but not all, employers—to provide direct tests of asymmetric employer learning. I develop a learning model and test its predictions for teacher mobility. I find that adopting VA increases within-district mobility of high-VA teachers, while low-VA teachers move out of district to uninformed principals. These patterns are consistent with asymmetric employer learning. This sorting from widespread VA adoption exacerbates inequality in access to effective teaching.

Suggested Citation

  • Michael Bates, 2020. "Public and Private Employer Learning: Evidence from the Adoption of Teacher Value Added," Journal of Labor Economics, University of Chicago Press, vol. 38(2), pages 375-420.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/705881
    DOI: 10.1086/705881
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    Cited by:

    1. Berlinski, Samuel & Ramos, Alejandra, 2020. "Peer effects in the decision to apply for a professional excellence award," Labour Economics, Elsevier, vol. 67(C).
    2. Ferreira, Daniel & Nikolowa, Radoslawa, 2023. "Talent discovery and poaching under asymmetric information," LSE Research Online Documents on Economics 116044, London School of Economics and Political Science, LSE Library.
    3. Schiman, Jeffrey C., 2021. "The Information Content of Employee Awards," Economics of Education Review, Elsevier, vol. 84(C).
    4. Bates, Michael & Dinerstein, Michael & Johnston, Andrew C. & Sorkin, Isaac, 2022. "Teacher Labor Market Equilibrium and Student Achievement," IZA Discussion Papers 15052, Institute of Labor Economics (IZA).
    5. Michael D. Bates & Michael Dinerstein & Andrew C. Johnston & Isaac Sorkin, 2022. "Teacher Labor Market Policy and the Theory of the Second Best," NBER Working Papers 29728, National Bureau of Economic Research, Inc.
    6. Gregory Elacqua & Diana Hincapie & Isabel Hincapie & Veronica Montalva, 2022. "Can Financial Incentives Help Disadvantaged Schools to Attract and Retain High‐Performing Teachers? Evidence from Chile," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 41(2), pages 603-631, March.
    7. Berlinski, Samuel & Ramos, Alejandra, 2020. "Teacher mobility and merit pay: Evidence from a voluntary public award program," Journal of Public Economics, Elsevier, vol. 186(C).

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