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

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  • Torberg Falch

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 .

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  • Torberg Falch, 2011. "Teacher Mobility Responses to Wage Changes: Evidence from a Quasi-natural Experiment," American Economic Review, American Economic Association, vol. 101(3), pages 460-465, May.
    • Handle: RePEc:aea:aecrev:v:101:y:2011:i:3:p:460-65
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    1. Clotfelter, Charles & Glennie, Elizabeth & Ladd, Helen & Vigdor, Jacob, 2008. "Would higher salaries keep teachers in high-poverty schools? Evidence from a policy intervention in North Carolina," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1352-1370, June.
    2. Bonesronning, Hans & Falch, Torberg & Strom, Bjarne, 2005. "Teacher sorting, teacher quality, and student composition," European Economic Review, Elsevier, vol. 49(2), pages 457-483, February.
    3. Torberg Falch, 2010. "The Elasticity of Labor Supply at the Establishment Level," Journal of Labor Economics, University of Chicago Press, vol. 28(2), pages 237-266, April.
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    1. Depew, Briggs & Sørensen, Todd A., 2013. "The elasticity of labor supply to the firm over the business cycle," Labour Economics, Elsevier, vol. 24(C), pages 196-204.
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    3. Gjefsen, Hege Marie, 2020. "Wages, teacher recruitment, and student achievement," Labour Economics, Elsevier, vol. 65(C).
    4. Boris Hirsch & Elke J. Jahn & Alan Manning & Michael Oberfichtner, 2022. "The Urban Wage Premium in Imperfect Labor Markets," Journal of Human Resources, University of Wisconsin Press, vol. 57(S), pages 111-136.
    5. Ernesto Dal Bó & Frederico Finan & Martín A. Rossi, 2013. "Strengthening State Capabilities: The Role of Financial Incentives in the Call to Public Service," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(3), pages 1169-1218.
    6. David Card & Ana Rute Cardoso & Joerg Heining & Patrick Kline, 2018. "Firms and Labor Market Inequality: Evidence and Some Theory," Journal of Labor Economics, University of Chicago Press, vol. 36(S1), pages 13-70.
    7. Li, Xiaowei & Guo, Yuanfang & Zhou, Siyu, 2021. "Chinese preschool teachers’ income, work-family conflict, organizational commitment, and turnover intention: A serial mediation model," Children and Youth Services Review, Elsevier, vol. 128(C).
    8. Clémence Berson, 2016. "Local labor markets and taste-based discrimination," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-21, December.
    9. Julien Silhol & Lionel Wilner, 2022. "Teachers' Desired Mobility to Disadvantaged Schools: Do Financial Incentives Matter?," CESifo Working Paper Series 9906, CESifo.
    10. Michael Bates & Michael Dinerstein & Andrew C. Johnston & Isaac Sorkin, 2022. "Teacher Labor Market Equilibrium and Student Achievement," CESifo Working Paper Series 9551, CESifo.
    11. Richard Cebula & Franklin Mixon & Mark Montez, 2015. "Teachers’ salaries and human capital, and their effects on academic performance: an institution-level analysis of Los Angeles County high schools," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 39(2), pages 347-356, April.
    12. Fabio Méndez & Facundo Sepúlveda, 2019. "Monopsony Power in Occupational Labor Markets," Journal of Labor Research, Springer, vol. 40(4), pages 387-411, December.
    13. Claudia Palma-Vasquez & Diego Carrasco & Mónica Tapia-Ladino, 2022. "Teacher Mobility: What Is It, How Is It Measured and What Factors Determine It? A Scoping Review," IJERPH, MDPI, vol. 19(4), pages 1-22, February.
    14. Arindrajit Dube & Laura Giuliano & Jonathan Leonard, 2019. "Fairness and Frictions: The Impact of Unequal Raises on Quit Behavior," American Economic Review, American Economic Association, vol. 109(2), pages 620-663, February.
    15. Manning, Alan, 2011. "Imperfect Competition in the Labor Market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 11, pages 973-1041, Elsevier.
    16. Corneo, Giacomo, 2013. "Die relative Bezahlung der Hochqualifizierten in Staat und Privatwirtschaft: Deutschland, 1977-2011," Discussion Papers 2013/19, Free University Berlin, School of Business & Economics.
    17. Grönqvist, Erik & Hensvik, Lena & Thoresson, Anna, 2020. "Teacher career opportunities and school quality," Working Paper Series 2020:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    18. Grönqvist, Erik & Hensvik, Lena & Thoresson, Anna, 2022. "Teacher career opportunities and school quality," Labour Economics, Elsevier, vol. 77(C).
    19. Ajzenman, Nicolás & Elacqua, Gregory & Marotta, Luana & Westh Olsen, Anne Sofie, 2021. "Order Effects and Employment Decisions: Experimental Evidence from a Nationwide Program," IDB Publications (Working Papers) 11541, Inter-American Development Bank.
    20. Geraldo Andrade Da Silva Filho & Cristine Campos De Xavier Pinto & Marcel De Toledo Vieira, 2016. "Does Money Move Teachers?," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42nd Brazilian Economics Meeting] 240, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    21. Karbownik, Krzysztof, 2014. "The determinants of teacher mobility in Sweden," Working Paper Series 2014:13, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    22. Torberg Falch, 2013. "Wages and Recruitment: Evidence from External Wage Changes," CESifo Working Paper Series 4078, CESifo.
    23. Elacqua, Gregory & Gómez, Leidy & Krussig, Thomas & Marotta, Luana & Méndez, Carolina & Neilson, Christopher, 2022. "The Potential of Smart Matching Platforms in Teacher Assignment: The Case of Ecuador," IDB Publications (Working Papers) 12483, Inter-American Development Bank.
    24. Berlinski, Samuel & Ramos, Alejandra, 2020. "Teacher mobility and merit pay: Evidence from a voluntary public award program," Journal of Public Economics, Elsevier, vol. 186(C).
    25. Torberg Falch & Bjarne Strøm, 2021. "Mobility of novice teachers," Working Paper Series 19121, Department of Economics, Norwegian University of Science and Technology.

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