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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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Author Info
Charles Clotfelter
Elizabeth Glennie
Helen Ladd
Jacob Vigdor

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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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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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Find related papers by JEL classification:
I2 - Health, Education, and Welfare - - Education
J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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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. 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. [Downloadable!] (restricted)
  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. [Downloadable!] (restricted)
  3. 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. [Downloadable!]
  4. 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. [Downloadable!] (restricted)
  5. 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. [Downloadable!] (restricted)
  6. Eric A. Hanushek & EJohn F. Kain & Steven G. Rivkin, 2004. "Why Public Schools Lose Teachers," Journal of Human Resources, University of Wisconsin Press, vol. 39(2). [Downloadable!] (restricted)
  7. Steven G. Rivkin & Eric A. Hanushek & John F. Kain, 2005. "Teachers, Schools, and Academic Achievement," Econometrica, Econometric Society, vol. 73(2), pages 417-458, 03. [Downloadable!] (restricted)
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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. Richard J. Murnane, 2008. "Educating Urban Children," NBER Working Papers 13791, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Stephen Gibbons & Olmo Silva, 2007. "Urban Density and Pupil Attainment," IZA Discussion Papers 2728, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. 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. [Downloadable!]
  4. 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. [Downloadable!] (restricted)
  5. 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. [Downloadable!] (restricted)
  6. Brian Jacob & Jens Ludwig, 2008. "Improving Educational Outcomes for Poor Children," NBER Working Papers 14550, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. 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. [Downloadable!]
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