Labor Market Dynamics and Teacher Spatial Sorting

Tim Ederer

No 13063, CESifo Working Paper Series from CESifo

Abstract: This paper studies how career dynamics shape teacher spatial sorting using data on Peru's centralized teacher allocation. I develop a dynamic two-sided matching model and identify teacher and school preferences from observed assignments and schools' discretionary evaluations. I use the estimated model to correct teacher value-added estimates for two-sided endogenous selection. The analysis reveals the existence of a spatial job ladder that dynamically sorts more effective teachers into urban schools, contributing to spatial inequality in student achievement. Targeted mobility restrictions can reduce the urban-rural effectiveness gap by 76 percent, but avoiding adverse selection requires compensating teachers for the implied welfare loss, highlighting an inherent recruitment–retention trade-off.

Keywords: teacher spatial sorting; dynamic matching; teacher value-added (search for similar items in EconPapers)
JEL-codes: C78 I24 J45 J62 R23 (search for similar items in EconPapers)
Date: 2026
New Economics Papers: this item is included in nep-edu and nep-uep
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