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The Labor Market for Teachers Under Different Pay Schemes

Author

Listed:
  • Barbara Biasi

Abstract

Compensation of most US public school teachers is rigid and solely based on seniority. This paper studies the labor market effects of a reform that gave school districts in Wisconsin full autonomy to redesign teacher pay schemes. Following the reform, some districts switched to flexible compensation and started paying high-quality teachers more. Teacher quality increased in these districts relative to those with seniority pay due to a change in workforce composition and an increase in effort. I estimate a structural model of this labor market to investigate the effects of counterfactual pay schemes on the composition of the teaching workforce.

Suggested Citation

  • Barbara Biasi, 2018. "The Labor Market for Teachers Under Different Pay Schemes," NBER Working Papers 24813, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:24813
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    Citations

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    Cited by:

    1. Michele Fioretti & Hongming Wang, 2023. "Performance Pay in Insurance Markets: Evidence from Medicare," The Review of Economics and Statistics, MIT Press, vol. 105(5), pages 1128-1144, September.
    2. Gershenson, Seth, 2021. "Identifying and Producing Effective Teachers," IZA Discussion Papers 14096, Institute of Labor Economics (IZA).
    3. Michele Fioretti & Hongming Wang, 2019. "Subsidizing Inequality: Performance Pay and Risk Selection in Medicare," SciencePo Working papers Main hal-03393070, HAL.
    4. E. Jason Baron, 2019. "Union Reform, Performance Pay, and New Teacher Supply: Evidence from Wisconsin's Act 10," Working Papers wp2019_01_01, Department of Economics, Florida State University.
    5. Clare Leaver & Owen Ozier & Pieter Serneels & Andrew Zeitlin, 2021. "Recruitment, Effort, and Retention Effects of Performance Contracts for Civil Servants: Experimental Evidence from Rwandan Primary Schools," American Economic Review, American Economic Association, vol. 111(7), pages 2213-2246, July.
    6. Baron, E. Jason, 2018. "The Effect of Teachers’ Unions on Student Achievement in the Short Run: Evidence from Wisconsin’s Act 10," Economics of Education Review, Elsevier, vol. 67(C), pages 40-57.
    7. repec:hal:spmain:info:hdl:2441/4bg68glinb8r8roh0akvprtu9u is not listed on IDEAS
    8. repec:hal:spmain:info:hdl:2441/2ioennpq5m90holakkatq7cmms is not listed on IDEAS
    9. Leaver, Clare & Lemos, Renata & Scur, Daniela, 2019. "Measuring and explaining management in schools: new approaches using public data," LSE Research Online Documents on Economics 103431, London School of Economics and Political Science, LSE Library.
    10. Michael Bates & Michael Dinerstein & Andrew C. Johnston & Isaac Sorkin, 2022. "Teacher Labor Market Equilibrium and Student Achievement," CESifo Working Paper Series 9551, CESifo.
    11. repec:spo:wpecon:info:hdl:2441/2ioennpq5m90holakkatq7cmms is not listed on IDEAS
    12. Mookerjee, Sulagna & Slichter, David, 2023. "Test scores, schools, and the geography of economic opportunity," Journal of Urban Economics, Elsevier, vol. 137(C).
    13. repec:hal:wpspec:info:hdl:2441/2ioennpq5m90holakkatq7cmms is not listed on IDEAS
    14. repec:hal:wpspec:info:hdl:2441/4bg68glinb8r8roh0akvprtu9u is not listed on IDEAS
    15. repec:spo:wpmain:info:hdl:2441/4bg68glinb8r8roh0akvprtu9u is not listed on IDEAS
    16. Grönqvist, Erik & Hensvik, Lena & Thoresson, Anna, 2020. "Teacher career opportunities and school quality," Working Paper Series 2020:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    17. Eunice S. Han, 2020. "The Effects of Teachers’ Unions on the Gender Pay Gap among U.S. Public School Teachers," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(4), pages 563-603, October.
    18. Christopher Neilson & Sebastian Gallegos & Franco Calle, 2019. "Screening and Recruiting Talent At Teacher Colleges Using Pre-College Academic Achievement," Working Papers 636, Princeton University, Department of Economics, Industrial Relations Section..
    19. Barbara Biasi & Heather Sarsons, 2020. "Flexible Wages, Bargaining, and the Gender Gap," NBER Working Papers 27894, National Bureau of Economic Research, Inc.
    20. Yeşilırmak, Muharrem, 2021. "A theoretical general equilibrium analysis of local teacher labor markets under different compensation regimes," Mathematical Social Sciences, Elsevier, vol. 113(C), pages 25-38.
    21. repec:spo:wpmain:info:hdl:2441/2ioennpq5m90holakkatq7cmms is not listed on IDEAS
    22. repec:spo:wpecon:info:hdl:2441/4bg68glinb8r8roh0akvprtu9u is not listed on IDEAS
    23. Kemp, Jack, 2022. "The Educational Impact of Weakening Teachers’ Unions : Evidence from Wisconsin," Warwick-Monash Economics Student Papers 39, Warwick Monash Economics Student Papers.
    24. Abott, Carolyn & Kogan, Vladimir & Lavertu, Stéphane & Peskowitz, Zachary, 2020. "School district operational spending and student outcomes: Evidence from tax elections in seven states," Journal of Public Economics, Elsevier, vol. 183(C).

    More about this item

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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