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

Torberg Falch

American Economic Review, 2011, vol. 101, issue 3, 460-65

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 .

Date: 2011
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Working Paper: Teacher mobility responses to wage changes: evidence from quasi-natural experiment (2010)
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