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Analyzing the Determinants of the Matching Public School Teachers to Jobs: Estimating Compensating Differentials in Imperfect Labor Markets

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Author Info
Donald Boyd
Hamilton Lankford
Susanna Loeb
James Wyckoff
Abstract

Although there is growing recognition of the contribution of teachers to students' educational outcomes, there are large gaps in our understanding of how teacher labor markets function. Most research on teacher labor markets use models developed for the private sector. However, markets for public school teachers differ in fundamental ways from those in the private sector. Collective bargaining and public decision making processes set teacher salaries. Thus it is unlikely that wages adjust quickly to equilibrate the supply and demand for worker and job attributes. The objective of this paper is to develop and estimate a model that more accurately characterizes the institutional features of teacher labor markets. The approach is based on a game-theoretic two-sided matching model and the estimation strategy employs the method of simulated moments. With this combination, we are able to estimate how factors affect the choices of individual teachers and hiring authorities, as well as how these choices interact to determine the equilibrium allocation of teachers across jobs. Even though this paper focuses on worker-job match within teacher labor markets, many of the issues raised and the empirical framework employed are relevant in other settings where wages are set administratively or, more generally, do not clear the pertinent markets for job and worker attributes.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 9878.

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Date of creation: Aug 2003
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Handle: RePEc:nbr:nberwo:9878

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I2 - Health, Education, and Welfare - - Education
J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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.:

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  5. 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!]
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  15. Rickman, Bill D. & Parker, Carl D., 1990. "Alternative wages and teacher mobility: A human capital approach," Economics of Education Review, Elsevier, vol. 9(1), pages 73-79, March. [Downloadable!] (restricted)
  16. Baugh, William H. & Stone, Joe A., 1982. "Mobility and wage equilibration in the educator labor market," Economics of Education Review, Elsevier, vol. 2(3), pages 253-274, June. [Downloadable!] (restricted)
  17. 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)
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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. Jeremy T. Fox, 2009. "Identification in Matching Games," NBER Working Papers 15092, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Li, Fei & Ueda, Masako, 2005. "CEO-Firm Match and Principal-Agent Problem," CEPR Discussion Papers 5119, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  3. 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!]
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