Testing implications of a tournament model of school district salary schedules
Using panel data on the salary schedules of public school teachers and administrators, I look for evidence of a tournament wage structure. A tournament model is presented, where teachers compete for promotion to administrators. Districts can create incentives for teachers by offering either a higher pay premium for promotion or a larger probability of promotion. The model predicts an inverse relationship between these two values. Evidence supporting this prediction is found in the data. In contrast, an alternative model of incentive pay, where returns to seniority substitute for imperfect monitoring, is not supported empirically. This result is consistent with intuition that tenure protections make it hard for districts to fire shirking teachers, making returns to seniority a poor method of providing incentives.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Laurence J. Kotlikoff & Jagadeesh Gokhale, 1992.
"Estimating a Firm's Age-Productivity Profile Using the Present Value of Workers' Earnings,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 107(4), pages 1215-1242.
- Laurence J. Kotlikoff & Jagadeesh Gokhale, 1991. "Estimating a firm's age-productivity profile using the present value of workers' earnings," Working Paper 9119, Federal Reserve Bank of Cleveland.
- Armando Levy & Tomislav Vukina, 2004. "The League Composition Effect in Tournaments with Heterogeneous Players: An Empirical Analysis of Broiler Contracts," Journal of Labor Economics, University of Chicago Press, vol. 22(2), pages 353-378, April.
- Randall Eberts & Kevin Hollenbeck & Joe Stone, 2002.
"Teacher Performance Incentives and Student Outcomes,"
Journal of Human Resources,
University of Wisconsin Press, vol. 37(4), pages 913-927.
- Randall W. Eberts & Kevin Hollenbeck & Joe A. Stone, . "Teacher Performance Incentives and Student Outcomes," Upjohn Working Papers and Journal Articles rwekhjs2002, W.E. Upjohn Institute for Employment Research.
- Randall Eberts & Kevin Hollenbeck & Joe Stone, 2000. "Teacher Performance Incentives and Student Outcomes," Upjohn Working Papers and Journal Articles 00-65, W.E. Upjohn Institute for Employment Research.
- Jan Zábojník & Dan Bernhardt, 2001. "Corporate Tournaments, Human Capital Acquisition, and the Firm Size—Wage Relation," Review of Economic Studies, Oxford University Press, vol. 68(3), pages 693-716.
- Dale Ballou & Michael Podgursky, 2002. "Returns to Seniority among Public School Teachers," Journal of Human Resources, University of Wisconsin Press, vol. 37(4), pages 892-912.
- Malcomson, James M, 1984. "Work Incentives, Hierarchy, and Internal Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 92(3), pages 486-507, June.
- Victor Lavy, 2002. "Evaluating the Effect of Teachers' Group Performance Incentives on Pupil Achievement," Journal of Political Economy, University of Chicago Press, vol. 110(6), pages 1286-1317, December.
- Gates, Susan M. & Ringel, Jeanne S. & Santibanez, Lucrecia & Guarino, Cassandra & Ghosh-Dastidar, Bonnie & Brown, Abigail, 2006. "Mobility and turnover among school principals," Economics of Education Review, Elsevier, vol. 25(3), pages 289-302, June.
- Lazear, Edward P, 1981. "Agency, Earnings Profiles, Productivity, and Hours Restrictions," American Economic Review, American Economic Association, vol. 71(4), pages 606-20, September.
- Daniel Aaronson & Lisa Barrow & William Sander, 2007.
"Teachers and Student Achievement in the Chicago Public High Schools,"
Journal of Labor Economics,
University of Chicago Press, vol. 25, pages 95-135.
- Daniel Aaronson & Lisa Barrow & William Sander, 2002. "Teachers and student achievement in the Chicago public high schools," Working Paper Series WP-02-28, Federal Reserve Bank of Chicago.
- 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).
- Eriksson, Tor, 1999. "Executive Compensation and Tournament Theory: Empirical Tests on Danish Data," Journal of Labor Economics, University of Chicago Press, vol. 17(2), pages 262-80, April.
- Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-84, December.
- 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.
- Joanne Salop & Steven C. Salop, 1976. "Self-selection and turnover in the labor market," Special Studies Papers 80, Board of Governors of the Federal Reserve System (U.S.).
- Lin, Chung-Cheng & Yang, C. C., 2003. "Tournaments, minimum wage, and money non-neutrality," Journal of Macroeconomics, Elsevier, vol. 25(4), pages 481-489, December.
- repec:sae:ilrrev:v:43:y:1990:i:3:p:13-29 is not listed on IDEAS
- Stefan Szymanski, 2003. "The Economic Design of Sporting Contests," Journal of Economic Literature, American Economic Association, vol. 41(4), pages 1137-1187, December.
- Main, Brian G M & O'Reilly, Charles A, III & Wade, James, 1993. "Top Executive Pay: Tournament or Teamwork?," Journal of Labor Economics, University of Chicago Press, vol. 11(4), pages 606-28, October.
When requesting a correction, please mention this item's handle: RePEc:eee:ecoedu:v:28:y:2009:i:1:p:143-151. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.