IDEAS home Printed from https://ideas.repec.org/a/ucp/jlabec/doi10.1086-705883.html
   My bibliography  Save this article

Weak Markets, Strong Teachers: Recession at Career Start and Teacher Effectiveness

Author

Listed:
  • Markus Nagler
  • Marc Piopiunik
  • Martin R. West

Abstract

How do alternative job opportunities affect teacher quality? We provide causal evidence on this question by exploiting business cycle conditions at career start as a source of exogenous variation in the outside options of potential teachers. Unlike prior research, we directly assess teacher quality with value-added measures of impacts on student test scores, using administrative data on over 30,000 Florida public school teachers. Consistent with a Roy model of occupational choice, teachers entering the profession during recessions are significantly more effective in raising student test scores. Results are supported by robustness tests and unlikely to be driven by differential attrition.

Suggested Citation

  • Markus Nagler & Marc Piopiunik & Martin R. West, 2020. "Weak Markets, Strong Teachers: Recession at Career Start and Teacher Effectiveness," Journal of Labor Economics, University of Chicago Press, vol. 38(2), pages 453-500.
  • Handle: RePEc:ucp:jlabec:doi:10.1086/705883
    DOI: 10.1086/705883
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/705883
    Download Restriction: Access to the online full text or PDF requires a subscription.

    File URL: http://dx.doi.org/10.1086/705883
    Download Restriction: Access to the online full text or PDF requires a subscription.

    File URL: https://libkey.io/10.1086/705883?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Peter Dolton & Oscar D. Marcenaro-Gutierrez, 2011. "If you pay peanuts do you get monkeys? A cross-country analysis of teacher pay and pupil performance [Discrimination in the market for public school teachers]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 26(65), pages 5-55.
    2. Sean P. Corcoran & William N. Evans & Robert M. Schwab, 2004. "Changing Labor-Market Opportunities for Women and the Quality of Teachers, 1957-2000," American Economic Review, American Economic Association, vol. 94(2), pages 230-235, May.
    3. Raj Chetty & John N. Friedman & Jonah E. Rockoff, 2014. "Measuring the Impacts of Teachers I: Evaluating Bias in Teacher Value-Added Estimates," American Economic Review, American Economic Association, vol. 104(9), pages 2593-2632, September.
    4. A. Colin Cameron & Jonah B. Gelbach & Douglas L. Miller, 2008. "Bootstrap-Based Improvements for Inference with Clustered Errors," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 414-427, August.
    5. Dolton, Peter J, 1990. "The Economics of UK Teacher Supply: The Graduate's Decision," Economic Journal, Royal Economic Society, vol. 100(400), pages 91-104, Supplemen.
    6. Andrew Bacher-Hicks & Thomas J. Kane & Douglas O. Staiger, 2014. "Validating Teacher Effect Estimates Using Changes in Teacher Assignments in Los Angeles," NBER Working Papers 20657, National Bureau of Economic Research, Inc.
    7. Falch, Torberg & Johansen, Kåre & Strøm, Bjarne, 2009. "Teacher shortages and the business cycle," Labour Economics, Elsevier, vol. 16(6), pages 648-658, December.
    8. George J. Borjas, 2002. "The Wage Structure and the Sorting of Workers into the Public Sector," NBER Working Papers 9313, National Bureau of Economic Research, Inc.
    9. Michael Boehm & Martin Watzinger, 2012. "The Allocation of Talent over the Business Cycle and its Effect on Sectoral Productivity," CEP Discussion Papers dp1143, Centre for Economic Performance, LSE.
    10. Chingos, Matthew M. & Peterson, Paul E., 2011. "It's easier to pick a good teacher than to train one: Familiar and new results on the correlates of teacher effectiveness," Economics of Education Review, Elsevier, vol. 30(3), pages 449-465, June.
    11. Matthew M. Chingos & Martin R. West, 2012. "Do More Effective Teachers Earn More Outside the Classroom?," Education Finance and Policy, MIT Press, vol. 7(1), pages 8-43, January.
    12. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    13. Marigee P. Bacolod, 2007. "Do Alternative Opportunities Matter? The Role of Female Labor Markets in the Decline of Teacher Quality," The Review of Economics and Statistics, MIT Press, vol. 89(4), pages 737-751, November.
    14. Britton, Jack & Propper, Carol, 2016. "Teacher pay and school productivity: Exploiting wage regulation," Journal of Public Economics, Elsevier, vol. 133(C), pages 75-89.
    15. Michael J. Böhm & Martin Watzinger, 2015. "The Allocation of Talent over the Business Cycle and its Long-term Effect on Sectoral Productivity," Economica, London School of Economics and Political Science, vol. 82(328), pages 892-911, October.
    16. Joppe de Ree & Karthik Muralidharan & Menno Pradhan & Halsey Rogers, 2018. "Double for Nothing? Experimental Evidence on an Unconditional Teacher Salary Increase in Indonesia," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(2), pages 993-1039.
    17. Burt S. Barnow & Matias D. Cattaneo & Rocío Titiunik & Gonzalo Vazquez‐Bare, 2017. "Comparing Inference Approaches for RD Designs: A Reexamination of the Effect of Head Start on Child Mortality," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 36(3), pages 643-681, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nagler, Markus & Piopiunik, Marc & West, Martin R., 2015. "Weak Markets, Strong Teachers," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112949, Verein für Socialpolitik / German Economic Association.
    2. Braga, Michela & Checchi, Daniele & Scervini, Francesco & Garrouste, Christelle, 2020. "Selecting or rewarding teachers? International evidence from primary schools," Economics of Education Review, Elsevier, vol. 76(C).
    3. Fraenkel, Rebecca Cannon, 2022. "Local labor markets and job match quality: Teachers," Labour Economics, Elsevier, vol. 78(C).
    4. Barigozzi, Francesca & Parasnis, Jaai & Tani, Massimiliano, 2022. "Gender, Motivation, and Self-Selection into Teaching," IZA Discussion Papers 15532, Institute of Labor Economics (IZA).
    5. Kraft, Matthew A. & Brunner, Eric J. & Dougherty, Shaun M. & Schwegman, David J., 2020. "Teacher accountability reforms and the supply and quality of new teachers," Journal of Public Economics, Elsevier, vol. 188(C).
    6. Hanushek, Eric A., 2011. "The economic value of higher teacher quality," Economics of Education Review, Elsevier, vol. 30(3), pages 466-479, June.
    7. Leigh, Andrew, 2012. "Teacher pay and teacher aptitude," Economics of Education Review, Elsevier, vol. 31(3), pages 41-53.
    8. Willén, Alexander, 2021. "Decentralization of wage determination: Evidence from a national teacher reform," Journal of Public Economics, Elsevier, vol. 198(C).
    9. Andrew Agopsowicz & Chris Robinson & Ralph Stinebrickner & Todd Stinebrickner, 2020. "Careers and Mismatch for College Graduates: College and Noncollege Jobs," Journal of Human Resources, University of Wisconsin Press, vol. 55(4), pages 1194-1221.
    10. Jose Maria Cabrera & Dinand Webbink, 2020. "Do Higher Salaries Yield Better Teachers and Better Student Outcomes?," Journal of Human Resources, University of Wisconsin Press, vol. 55(4), pages 1222-1257.
    11. 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.
    12. Falch, Torberg & Johansen, Kåre & Strøm, Bjarne, 2009. "Teacher shortages and the business cycle," Labour Economics, Elsevier, vol. 16(6), pages 648-658, December.
    13. Steingrimsdottir, Herdis, 2020. "The decreased popularity of the teaching sector in the 1970s," Economics of Education Review, Elsevier, vol. 74(C).
    14. Carol Propper & John Van Reenen, 2010. "Can Pay Regulation Kill? Panel Data Evidence on the Effect of Labor Markets on Hospital Performance," Journal of Political Economy, University of Chicago Press, vol. 118(2), pages 222-273, April.
    15. Figlio, D. & Karbownik, K. & Salvanes, K.G., 2016. "Education Research and Administrative Data," Handbook of the Economics of Education,, Elsevier.
    16. Johnston, Andrew C., 2021. "Preferences, Selection, and the Structure of Teacher Pay," IZA Discussion Papers 14831, Institute of Labor Economics (IZA).
    17. Rowena Crawford & Richard Disney, 2018. "Wage Regulation and the Quality of Police Applicants," Economica, London School of Economics and Political Science, vol. 85(340), pages 701-734, October.
    18. Laura D. Quinby, 2020. "Do Deferred Retirement Benefits Retain Government Employees?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(2), pages 469-509, March.
    19. Renata Lemos & Karthik Muralidharan & Daniela Scur, 2021. "Personnel Management and School Productivity: Evidence from India," NBER Working Papers 28336, National Bureau of Economic Research, Inc.
    20. Kim, Dongwoo & Koedel, Cory & Ni, Shawn & Podgursky, Michael, 2017. "Labor market frictions and production efficiency in public schools," Economics of Education Review, Elsevier, vol. 60(C), pages 54-67.

    More about this item

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jlabec:doi:10.1086/705883. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JOLE .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.