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Teacher shortages and the business cycle

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  • Falch, Torberg
  • Johansen, Kåre
  • Strøm, Bjarne

Abstract

The ability of the public sector to recruit skilled workers is important for the quality of public sector services. Centralized and rigid pay systems in the public sector might reduce labour supply and lead to shortages of qualified personnel in areas and periods with strong outside labour markets. This paper shows that teacher shortages measured by the share of teachers without approved education are strongly procyclical in Norway. Using a large panel of Norwegian local governments for 1981-2002 and exploiting the rigid wage system, we find a sizeable negative relationship between teacher shortages and the regional unemployment rate.

Suggested Citation

  • Falch, Torberg & Johansen, Kåre & Strøm, Bjarne, 2009. "Teacher shortages and the business cycle," Labour Economics, Elsevier, vol. 16(6), pages 648-658, December.
  • Handle: RePEc:eee:labeco:v:16:y:2009:i:6:p:648-658
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    Cited by:

    1. Falch, Torberg & Johansen, Kåre & Strøm, Bjarne, 2009. "Teacher shortages and the business cycle," Labour Economics, Elsevier, pages 648-658.
    2. Markus Nagler & Marc Piopiunik & Martin R. West, 2015. "Weak Markets, Strong Teachers: Recession at Career Start and Teacher Effectiveness," CESifo Working Paper Series 5454, CESifo Group Munich.
    3. Falch, Torberg & Fischer, Justina A.V., 2012. "Public sector decentralization and school performance: International evidence," Economics Letters, Elsevier, pages 276-279.
    4. Nagler, Markus & Piopiunik, Marc & West, Martin R., 2015. "Weak Markets, Strong Teachers," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112949, Verein für Socialpolitik / German Economic Association.
    5. Stefanie Hof & Mirjam Strupler & Stefan C. Wolter, 2011. "Quereinsteiger in den Lehrberuf am Beispiel der schweizerischen Berufsbildung," Economics of Education Working Paper Series 0059, University of Zurich, Department of Business Administration (IBW).
    6. Maczulskij, Terhi, 2013. "Public–private sector wage differentials and the business cycle," Economic Systems, Elsevier, vol. 37(2), pages 284-301.
    7. Torberg Falch & Astrid Marie Jorde Sandsør & Bjarne Strøm, 2015. "Do smaller classes always improve students' long run outcomes?," Working Paper Series 16415, Department of Economics, Norwegian University of Science and Technology.

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