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Wage elasticity of the teacher supply in Switzerland

  • Stefan C. Wolter
  • Stefan Denzler

In order to learn more about the teacher supply in Switzerland, this paper analyses eleven surveys of graduates of all Swiss universities for the period of 1981-2001. We estimate wages for teachers and non-teachers with the help of selection models. The predicted individual wage differentials between teaching and all other jobs indicate a positive self-selection of teachers into teaching. Furthermore the reaction of teachers supply on the wage differential shows a wage elasticity of 0.41. As in other studies, the wage differential is counter cyclical, due to the static wage setting of the public. As a consequence, the public sector itself is creating at least a part of the cyclical pattern of teacher shortages and oversupplies.

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Article provided by ULB -- Universite Libre de Bruxelles in its journal Brussels economic review.

Volume (Year): 47 (2004)
Issue (Month): 3-4 ()
Pages: 387-408

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Handle: RePEc:bxr:bxrceb:y:2004:v:47:i:3-4:p:387-407
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  1. Peter Temin, 2002. "Teacher Quality and the Future of America," Eastern Economic Journal, Eastern Economic Association, vol. 28(3), pages 285-300, Summer.
  2. 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.
  3. 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.
  4. Dolton, P. J. & Makepeace, G. H., 1993. "Female labour force participation and the choice of occupation: The supply of teachers," European Economic Review, Elsevier, vol. 37(7), pages 1393-1411, October.
  5. Peter Temin, 2002. "Teacher Quality and the Future of America," NBER Working Papers 8898, National Bureau of Economic Research, Inc.
  6. Hanushek, E.A.omson, W., 1996. "Assessing the Effects of School Resources on Student Performance : An Update," RCER Working Papers 424, University of Rochester - Center for Economic Research (RCER).
  7. Mont, Daniel & Rees, Daniel I, 1996. "The Influence of Classroom Characteristics on High School Teacher Turnover," Economic Inquiry, Western Economic Association International, vol. 34(1), pages 152-67, January.
  8. Hanushek, Eric A. & Pace, Richard R., 1995. "Who chooses to teach (and why)?," Economics of Education Review, Elsevier, vol. 14(2), pages 101-117, June.
  9. 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.
  10. Dale Ballou & Michael Podgursky, 1998. "Teacher recruitment and retention in public and private schools," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 17(3), pages 393-417.
  11. 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.
  12. 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.
  13. Richard J. Murnane & Randall J. Olsen, 1990. "The Effects of Salaries and Opportunity Costs on Length of Stay in Teaching: Evidence from North Carolina," Journal of Human Resources, University of Wisconsin Press, vol. 25(1), pages 106-124.
  14. R. Mark Gritz & Neil D. Theobald, 1996. "The Effects of School District Spending Priorities on Length of Stay in Teaching," Journal of Human Resources, University of Wisconsin Press, vol. 31(3), pages 477-512.
  15. 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.
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