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The Economics of Teacher Quality

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  • Lakdawalla, Darius

Abstract

Concern is often voiced about the quality of American schoolteachers. This paper suggests that, while the relative quality of teachers is declining, this decline may be the result of technological changes that have raised the price of skilled workers outside teaching without affecting the productivity of skilled teachers. Growth in the price of skilled workers can cause schools to lower the relative quality of teachers and raise teacher quantity instead. Evidence from the National Longitudinal Survey of Youth demonstrates that wage and schooling are good measures of teacher quality. Analysis of U.S. census microdata then reveals that the relative schooling and experience-adjusted relative wages of U.S. schoolteachers have fallen significantly from 1940 to 1990. Moreover, class sizes have also fallen substantially. The declines in class size and in relative quality seem correlated over time and space with growth in the relative price of skilled workers.

Suggested Citation

  • Lakdawalla, Darius, 2006. "The Economics of Teacher Quality," Journal of Law and Economics, University of Chicago Press, vol. 49(1), pages 285-329, April.
  • Handle: RePEc:ucp:jlawec:y:2006:v:49:i:1:p:285-329
    DOI: 10.1086/501083
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    Cited by:

    1. Falch, Torberg & Johansen, Kåre & Strøm, Bjarne, 2009. "Teacher shortages and the business cycle," Labour Economics, Elsevier, vol. 16(6), pages 648-658, December.
    2. Andersson, Christian & Waldenström, Nina, 2007. "Teacher supply and the market for teachers," Working Paper Series 2007:5, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    3. Audra Bowlus & Lance Lochner & Chris Robinson & Eda Suleymanoglu, 2021. "Wages, Skills, and Skill-Biased Technical Change: The Canonical Model Revisited," CESifo Working Paper Series 9212, CESifo.
    4. Hatsor, Limor, 2012. "Occupational choice: Teacher quality versus teacher quantity," Labour Economics, Elsevier, vol. 19(4), pages 608-623.
    5. Grönqvist, Erik & Vlachos, Jonas, 2016. "One size fits all? The effects of teachers' cognitive and social abilities on student achievement," Labour Economics, Elsevier, vol. 42(C), pages 138-150.
    6. Terhi Maczulskij, 2016. "Higher education and public sector employment: evidence from Finnish data on twins," International Review of Applied Economics, Taylor & Francis Journals, vol. 30(5), pages 605-619, September.
    7. Li Han & Jiaxin Xie, 2015. "Can Conditional Grants Attract Better Students: Evidence from Chinese Normal Universities," HKUST IEMS Working Paper Series 2015-14, HKUST Institute for Emerging Market Studies, revised Mar 2015.
    8. Gilpin, Gregory & Kaganovich, Michael, 2012. "The quantity and quality of teachers: Dynamics of the trade-off," Journal of Public Economics, Elsevier, vol. 96(3), pages 417-429.
    9. Barón-Rivera, Juan David & Bonilla-Mejía, Leonardo, 2014. "Desempeño relativo de los graduados en el área de educación en el examen de Estado del ICFES," Chapters, in: Sánchez Jabba, Andrés & Otero Cortés, Andrea (ed.), Educación y desarrollo regional en Colombia, chapter 4, pages 131-157, Banco de la Republica de Colombia.
    10. Gilpin, Gregory A., 2011. "Reevaluating the effect of non-teaching wages on teacher attrition," Economics of Education Review, Elsevier, vol. 30(4), pages 598-616, August.
    11. Fraenkel, Rebecca Cannon, 2022. "Local labor markets and job match quality: Teachers," Labour Economics, Elsevier, vol. 78(C).
    12. Gilpin, Gregory & Kaganovich, Michael, 2012. "The quantity and quality of teachers: Dynamics of the trade-off," Journal of Public Economics, Elsevier, vol. 96(3), pages 417-429.
    13. Barros, Fernando & Delalibera, Bruno R. & Nakabashi, Luciano & Ribeiro, Marcos J., 2023. "Misallocation of talent, teachers’ human capital, and development in Brazil," Journal of Macroeconomics, Elsevier, vol. 77(C).
    14. Gregory Gilpin & Michael Kaganovich, 2009. "The Quantity and Quality of Teachers: A Dynamic Trade-off," CESifo Working Paper Series 2516, CESifo.
    15. Vlachos, Jonas & Grönqvist, Erik, 2008. "One Size Fits All? The Effects of Teacher Cognitive and Non-Cognitive Abilities on Student Achievement," CEPR Discussion Papers 7086, C.E.P.R. Discussion Papers.
    16. Gregory Gilpin, 2009. "Reevaluating the Effect of Non-Teaching Wages on Teacher Attrition," CAEPR Working Papers 2009-022, Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington.
    17. Willén, Alexander, 2021. "Decentralization of wage determination: Evidence from a national teacher reform," Journal of Public Economics, Elsevier, vol. 198(C).
    18. Grönqvist, Erik & Vlachos, Jonas, 2008. "One Size Fits All? The Effects of Teacher Cognitive and Non-cognitive Abilities on Student," Working Paper Series 779, Research Institute of Industrial Economics.

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