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Would Higher Salaries Keep Teachers in High-Poverty Schools? Evidence from a Policy Intervention in North Carolina

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  • Charles Clotfelter
  • Elizabeth Glennie
  • Helen Ladd
  • Jacob Vigdor

Abstract

For a three-year time period beginning in 2001, North Carolina awarded an annual bonus of $1,800 to certified math, science and special education teachers working in high poverty or academically failing public secondary schools. Using longitudinal data on teachers, we estimate hazard models that identify the impact of this differential pay by comparing turnover patterns before and after the program%u2019s implementation, across eligible and ineligible categories of teachers, and across eligible and barely-ineligible schools. Results suggest that this bonus payment was sufficient to reduce mean turnover rates of the targeted teachers by 12%. Experienced teachers exhibited the strongest response to the program. Finally, the effect of the program may have been at least partly undermined by the state%u2019s failure to fully educate teachers regarding the eligibility criteria. Our estimates most likely underpredict the potential outcome of a program of permanent salary differentials operating under complete information.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 12285.

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Date of creation: Jun 2006
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Handle: RePEc:nbr:nberwo:12285

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  1. Eric A. Hanushek & John F. Kain & Steven G. Rivkin, 1998. "Teachers, Schools, and Academic Achievement," NBER Working Papers 6691, National Bureau of Economic Research, Inc.
  2. 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.
  3. Jonah E. Rockoff, 2004. "The Impact of Individual Teachers on Student Achievement: Evidence from Panel Data," American Economic Review, American Economic Association, vol. 94(2), pages 247-252, May.
  4. Alan Krueger, 1997. "Experimental Estimates of Education Production Functions," Working Papers 758, Princeton University, Department of Economics, Industrial Relations Section..
  5. 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.
  6. 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.
  7. Eric A. Hanushek & John F. Kain & Steven G. Rivkin, 1999. "Do Higher Salaries Buy Better Teachers?," NBER Working Papers 7082, National Bureau of Economic Research, Inc.
  8. Susanna Loeb & Marianne E. Page, 2000. "Examining The Link Between Teacher Wages And Student Outcomes: The Importance Of Alternative Labor Market Opportunities And Non-Pecuniary Variation," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 393-408, August.
  9. 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.
  10. Dale Ballou & Michael Podgursky, 1995. "Recruiting Smarter Teachers," Journal of Human Resources, University of Wisconsin Press, vol. 30(2), pages 326-338.
  11. Clotfelter, Charles T. & Ladd, Helen F. & Vigdor, Jacob, 2005. "Who teaches whom? Race and the distribution of novice teachers," Economics of Education Review, Elsevier, vol. 24(4), pages 377-392, August.
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Cited by:
  1. Silva, Olmo, 2009. "Some Remarks on the Effectiveness of Primary Education Interventions," IZA Policy Papers 5, Institute for the Study of Labor (IZA).
  2. Pallas, Aaron M., 2010. "Meeting the basic educational needs of children and youth," Children and Youth Services Review, Elsevier, vol. 32(9), pages 1199-1210, September.
  3. Charles T. Clotfelter & Helen F. Ladd & Jacob L. Vigdor, 2007. "Are Teacher Absences Worth Worrying About in the U.S.?," NBER Working Papers 13648, National Bureau of Economic Research, Inc.
  4. Antecol, Heather & Eren, Ozkan & Ozbeklik, Serkan, 2013. "The Effect of Teach for America on the Distribution of Student Achievement in Primary School: Evidence from a Randomized Experiment," IZA Discussion Papers 7296, Institute for the Study of Labor (IZA).
  5. Rogers, F. Halsey & Vegas, Emiliana, 2009. "No more cutting class ? reducing teacher absence and providing incentives for performance," Policy Research Working Paper Series 4847, The World Bank.
  6. Hasnain, Zahid & Manning, Nick & Pierskalla Henryk, 2012. "Performance-related pay in the public sector : a review of theory and evidence," Policy Research Working Paper Series 6043, The World Bank.
  7. Eric A. Hanushek & Steven G. Rivkin, 2008. "Harming the Best: How Schools Affect the Black-White Achievement Gap," NBER Working Papers 14211, National Bureau of Economic Research, Inc.
  8. Winters, John V, 2010. "Teacher Salaries and Teacher Unions: A Spatial Econometric Approach," MPRA Paper 21202, University Library of Munich, Germany.
  9. Steve Gibbons & Olmo Silva, 2007. "Urban Density and Pupil Attainment," CEE Discussion Papers 0080, Centre for the Economics of Education, LSE.
  10. Torberg Falch, 2013. "Wages and Recruitment: Evidence from External Wage Changes," CESifo Working Paper Series 4078, CESifo Group Munich.
  11. Richard J. Murnane, 2008. "Educating Urban Children," NBER Working Papers 13791, National Bureau of Economic Research, Inc.
  12. Jennifer Imazeki, 2008. "Attracting and Retaining Teachers in High-Need Schools: Do Financial Incentives Make Financial Sense?," Working Papers 0030, San Diego State University, Department of Economics.
  13. Jennifer L. Steele & Richard J. Murnane & John B. Willett, 2009. "Do Financial Incentives Help Low-Performing Schools Attract and Keep Academically Talented Teachers? Evidence from California," NBER Working Papers 14780, National Bureau of Economic Research, Inc.
  14. Brian Jacob & Jens Ludwig, 2008. "Improving Educational Outcomes for Poor Children," NBER Working Papers 14550, National Bureau of Economic Research, Inc.

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