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Do More Effective Teachers Earn More Outside of the Classroom?

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  • Matthew M. Chingos
  • Martin R. West
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    Abstract

    We examine earnings records for 90,000 classroom teachers employed by Florida public schools between the 2001–02 and 2006–07 school years, roughly 20,000 of whom left teaching during that time. Among grade 4–8 teachers leaving for other industries, a 1 standard deviation increase in estimated value-added to student achievement is associated with 6–9 percent higher earnings outside of teaching. The relationship between effectiveness and earnings is stronger in other industries than it is for the same teachers while in the classroom, suggesting that existing compensation systems do not account for the higher opportunity wages of effective teachers.

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    File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2010/wp-cesifo-2010-03/cesifo1_wp2996.pdf
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    Bibliographic Info

    Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2996.

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    Date of creation: 2010
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    Handle: RePEc:ces:ceswps:_2996

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    1. Dolton, Peter J & van der Klaauw, Wilbert, 1995. "Leaving Teaching in the UK: A Duration Analysis," Economic Journal, Royal Economic Society, vol. 105(429), pages 431-44, March.
    2. Todd R. Stinebrickner, 2002. "An Analysis of Occupational Change and Departure from the Labor Force: Evidence of the Reasons that Teachers Leave," Journal of Human Resources, University of Wisconsin Press, vol. 37(1), pages 192-216.
    3. Jonah E. Rockoff & Brian A. Jacob & Thomas J. Kane & Douglas O. Staiger, 2011. "Can You Recognize an Effective Teacher When You Recruit One?," Education Finance and Policy, MIT Press, vol. 6(1), pages 43-74, January.
    4. Caroline M. Hoxby & Andrew Leigh, 2004. "Pulled Away or Pushed Out? Explaining the Decline of Teacher Aptitude in the United States," American Economic Review, American Economic Association, vol. 94(2), pages 236-240, May.
    5. Benjamin Scafidi & David L. Sjoquist & Todd R. Stinebrickner, 2005. "Do Teachers Really Leave for Higher Paying Jobs in Alternative Occupations?," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20055, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
    6. Thomas J. Kane & Douglas O. Staiger, 2008. "Estimating Teacher Impacts on Student Achievement: An Experimental Evaluation," NBER Working Papers 14607, National Bureau of Economic Research, Inc.
    7. Peter Dolton & Wilbert van der Klaauw, 1999. "The Turnover of Teachers: A Competing Risks Explanation," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 543-550, August.
    8. Richard J. Murnane & Randall J. Olsen, 1990. "The Effects of Salaries and Opportunity Costs on Length of Stay in Teaching: Evidence from North Carolina," Journal of Human Resources, University of Wisconsin Press, vol. 25(1), pages 106-124.
    9. Podgursky, Michael & Monroe, Ryan & Watson, Donald, 2004. "The academic quality of public school teachers: an analysis of entry and exit behavior," Economics of Education Review, Elsevier, vol. 23(5), pages 507-518, October.
    10. Harris, Douglas N. & Sass, Tim R., 2011. "Teacher training, teacher quality and student achievement," Journal of Public Economics, Elsevier, vol. 95(7), pages 798-812.
    11. Boardman, Anthony E. & Darling-Hammond, Linda & Mullin, Stephen P., 1982. "A framework for the analysis of teachers' demand and supply," Economics of Education Review, Elsevier, vol. 2(2), pages 127-155, April.
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Good teachers earn more in new jobs
      by Joanne in Linking and Thinking on Education by Joanne Jacobs on 2010-04-25 10:15:57
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    Cited by:
    1. Hof, Stefanie & Strupler, Mirjam & Wolter, Stefan C., 2011. "Career Changers in Teaching Jobs: A Case Study Based on the Swiss Vocational Education System," IZA Discussion Papers 5806, Institute for the Study of Labor (IZA).
    2. Chingos, Matthew M. & West, Martin R., 2011. "Promotion and reassignment in public school districts: How do schools respond to differences in teacher effectiveness?," Economics of Education Review, Elsevier, vol. 30(3), pages 419-433, June.
    3. Stefanie Hof & Mirjam Strupler & Stefan C. Wolter, 2011. "Quereinsteiger in den Lehrberuf am Beispiel der schweizerischen Berufsbildung," Economics of Education Working Paper Series 0059, University of Zurich, Institute for Strategy and Business Economics (ISU).

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