The Effects of Salaries and Opportunity Costs on Length of Stay in Teaching: Evidence from North Carolina

Richard Murnane and Randall J. Olsen

Journal of Human Resources, 1990, vol. 25, issue 1, 106-124

Abstract: This paper shows that teachers who are paid more stay longer in teaching, that teachers with high opportunity costs, as measured by test scores and subject specialties, stay in teaching less long than other teachers do, and that salaries influence duration less for teachers with high test scores than for teachers with lower scores. The research is based on a new longitudinal dataset providing information on the career histories of 13,890 North Carolina teachers. The empirical work uses a generalized least squares estimation technique that accommodates censored observations, time-varying covariates, and fixed effects.

Date: 1990
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