The Labor Market for Teachers Under Different Pay Schemes

57 Pages Posted: 16 Jul 2018 Last revised: 19 Nov 2021

See all articles by Barbara Biasi

Barbara Biasi

Yale School of Management; National Bureau of Economic Research (NBER)

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Date Written: July 2018

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

Biasi, Barbara, The Labor Market for Teachers Under Different Pay Schemes (July 2018). Available at SSRN: https://ssrn.com/abstract=3214358

Barbara Biasi (Contact Author)

Yale School of Management ( email )

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