The Labor Market for Teachers Under Different Pay Schemes

Barbara Biasi

No 24813, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: I20 J31 J45 J51 J61 J63 (search for similar items in EconPapers)
Date: 2018-07
New Economics Papers: this item is included in nep-lab and nep-ure
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Citations: View citations in EconPapers (32)

Published as Barbara Biasi, 2021. "The Labor Market for Teachers under Different Pay Schemes," American Economic Journal: Economic Policy, vol 13(3), pages 63-102.

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