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To Teach or not to Teach? Panel Data Evidence on the Quitting Decision

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Author Info
Paul Frijters
Michael A. Shields
Stephen Wheatley Price

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Abstract

The question we address in this paper is which factors influence the quitting decision of public sector teachers in England and Wales, using a nationally representative panel data set over 1997-2003. We document the outcomes of former teachers, fit single and competing-risks duration models and examine the influence of relative pay on retention. Surprisingly, we find that teachers who move to outside employment earn 22% less pay, work longer hours, in largely nonprofessional occupations and mainly stay within the public sector. We estimate that a 10% increase in teachers’ relative pay would reduce annual quitting rates by less than 1%.

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File URL: http://www.economics.unimelb.edu.au/SITE/research/workingpapers/wp04/916.pdf
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Publisher Info
Paper provided by The University of Melbourne in its series Department of Economics - Working Papers Series with number 916.

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Length: 29 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:mlb:wpaper:916

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Postal: Department of Economics, The University of Melbourne, 5th Floor, Economics and Commerce Building, Victoria, 3010, Australia
Phone: +61 3 8344 5289
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Web page: http://www.economics.unimelb.edu.au
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Related research
Keywords: Teachers; Panel Data; Wages; Quitting;

Other versions of this item:

Find related papers by JEL classification:
J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Theobald, Neil D. & Gritz, R. Mark, 1996. "The effects of school district spending priorities on the exit paths of beginning teachers leaving the district," Economics of Education Review, Elsevier, vol. 15(1), pages 11-22, February. [Downloadable!] (restricted)
  2. Dolton, Peter J., 2006. "Teacher Supply," Handbook of the Economics of Education, Elsevier. [Downloadable!] (restricted)
  3. 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. [Downloadable!] (restricted)
  4. Flyer, Fredrick & Rosen, Sherwin, 1997. "The New Economics of Teachers and Education," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages S104-39, January. [Downloadable!] (restricted)
    Other versions:
  5. Murnane, Richard J & Olsen, Randall J, 1989. "The Effects of Salaries and Opportunity Costs on Duration in Teaching: Evidence from Michigan," The Review of Economics and Statistics, MIT Press, vol. 71(2), pages 347-52, May. [Downloadable!] (restricted)
  6. Stinebrickner, Todd R., 1998. "An Empirical Investigation of Teacher Attrition," Economics of Education Review, Elsevier, vol. 17(2), pages 127-136, April. [Downloadable!] (restricted)
  7. Eric A. Hanushek & John F. Kain & Steven G. Rivkin, 2001. "Why Public Schools Lose Teachers," NBER Working Papers 8599, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Dolton, Peter & van der Klaauw, Wilbert, 1994. "The Turnover of UK Teachers: A Competing Risks Analysis," Working Papers 94-21, C.V. Starr Center for Applied Economics, New York University. [Downloadable!]
  9. Brewer, Dominic J, 1996. "Career Paths and Quit Decisions: Evidence from Teaching," Journal of Labor Economics, University of Chicago Press, vol. 14(2), pages 313-39, April. [Downloadable!] (restricted)
  10. Tsung Ping Chung & Peter Dolton & Andrew Tremayne, 2004. "The Determinants Of Teacher Supply: Time Series Evidence For The UK, 1962-2001," Royal Economic Society Annual Conference 2004 66, Royal Economic Society. [Downloadable!]
  11. Van den Berg, Gerard J., 2000. "Duration Models: Specification, Identification, and Multiple Durations," MPRA Paper 9446, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  12. Frijters, Paul & Shields, Michael A. & Theodoropoulos, Nikolaos & Wheatley Price, Stephen, 2003. "Testing for Employee Discrimination Using Matched Employer-Employee Data: Theory and Evidence," IZA Discussion Papers 807, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  13. Torberg Falch & Bjarne Strøm, 2003. "Teacher Turnover and Non-Pecuniary Factors," Working Paper Series 3604, Department of Economics, Norwegian University of Science and Technology. [Downloadable!]
  14. Michael A. Shields, 2004. "Addressing nurse shortages: what can policy makers learn from the econometric evidence on nurse labour supply?," Economic Journal, Royal Economic Society, vol. 114(499), pages F464-F498, November. [Downloadable!] (restricted)
  15. Baker, Michael & Melino, Angelo, 2000. "Duration dependence and nonparametric heterogeneity: A Monte Carlo study," Journal of Econometrics, Elsevier, vol. 96(2), pages 357-393, June. [Downloadable!] (restricted)
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  16. Stephen Pudney & Michael Shields, . "Gender, Race, Pay and Promotion in the British Nursing Profession: Estimation of a Generalised Ordered Probit Model," Discussion Papers in Public Sector Economics 97/4, Department of Economics, University of Leicester.
    Other versions:
  17. Stinebrickner, Todd R, 2001. "Compensation Policies and Teacher Decisions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(3), pages 751-79, August.
  18. Murnane, Richard J, 1984. "Selection and Survival in the Teacher Labor Market," The Review of Economics and Statistics, MIT Press, vol. 66(3), pages 513-18, August. [Downloadable!] (restricted)
  19. 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. [Downloadable!] (restricted)
  20. Blundell, Richard & Macurdy, Thomas, 1999. "Labor supply: A review of alternative approaches," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 27, pages 1559-1695 Elsevier. [Downloadable!] (restricted)
    Other versions:
  21. Stinebrickner, Todd R, 2001. "A Dynamic Model of Teacher Labor Supply," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 196-230, January. [Downloadable!] (restricted)
  22. Frijters, Paul & Shields, Michael A. & Wheatley Price, Stephen, 2003. "Investigating the Quitting Decision of Nurses: Panel Data Evidence from the British National Health Service," IZA Discussion Papers 794, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Paul Frijters & Michael A. Shields & Stephen Wheatley Price, 2007. "Investigating the quitting decision of nurses: panel data evidence from the british national health service," Health Economics, John Wiley & Sons, Ltd., vol. 16(1), pages 57-73. [Downloadable!]
    Other versions:
  2. Elizabeth Webster & Mark Wooden & Gary Marks, 2004. "Reforming the Labour Market for Australian Teachers," Melbourne Institute Working Paper Series wp2004n28, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
  3. Jones, Melanie K. & Jones, Richard J. & Latreille, Paul L. & Sloane, Peter J., 2008. "Training, Job Satisfaction and Workplace Performance in Britain: Evidence from WERS 2004," IZA Discussion Papers 3677, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
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