Pension-Induced Rigidities in the Labor Market for School Leaders
AbstractEducators in public schools in the United States are typically enrolled in defined-benefit pension plans, which penalize across-plan mobility. We use administrative data from Missouri to examine how the mobility penalties affect the labor market for school leaders. We show that pension borders greatly affect leadership flows across schools â€“ for two groups of schools separated by a pension border, our estimates indicate that removing the border will increase leadership mobility between them by 97 to 163 percent. We consider the implications of the pension-induced rigidities in the leadership labor market for schools near pension borders in Missouri. Our findings are of general interest given that thousands of public schools operate near pension boundaries nationwide.
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Bibliographic InfoPaper provided by Department of Economics, University of Missouri in its series Working Papers with number 1115.
Length: 48 pgs.
Date of creation: 15 Sep 2011
Date of revision:
Educator pensions; backloaded compensation; principal quality; leadership quality; compensation in education;
Other versions of this item:
- Cory Koedel & Jason A. Grissom & Shawn Ni & Michael Podgursky, 2011. "Pension-Induced Rigidities in the Labor Market for School Leaders," CESifo Working Paper Series 3605, CESifo Group Munich.
- H5 - Public Economics - - National Government Expenditures and Related Policies
- I2 - Health, Education, and Welfare - - Education
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
This paper has been announced in the following NEP Reports:
- NEP-AGE-2011-10-01 (Economics of Ageing)
- NEP-ALL-2011-10-01 (All new papers)
- NEP-EDU-2011-10-01 (Education)
- NEP-LAB-2011-10-01 (Labour Economics)
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