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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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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.101.3.460
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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 101 (2011)
Issue (Month): 3 (May)
Pages: 460-65

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Handle: RePEc:aea:aecrev:v:101:y:2011:i:3:p:460-65

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  1. Torberg Falch, 2008. "The elasticity of labor supply at the establishment level," Working Papers 1106, Princeton University, Department of Economics, Industrial Relations Section..
  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. Charles Clotfelter & Elizabeth Glennie & Helen Ladd & Jacob Vigdor, 2006. "Would Higher Salaries Keep Teachers in High-Poverty Schools? Evidence from a Policy Intervention in North Carolina," NBER Working Papers 12285, National Bureau of Economic Research, Inc.
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Cited by:
  1. Dal Bó, Ernesto & Finan, Frederico S. & Rossi, Martín A., 2012. "Strengthening State Capabilities: The Role of Financial Incentives in the Call to Public Service," IZA Discussion Papers 6645, Institute for the Study of Labor (IZA).
  2. Torberg Falch, 2013. "Wages and Recruitment: Evidence from External Wage Changes," CESifo Working Paper Series 4078, CESifo Group Munich.
  3. Alan Manning, 2010. "Imperfect Competition in the Labour Market," CEP Discussion Papers dp0981, Centre for Economic Performance, LSE.
  4. 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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