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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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    2. Reiling, Rune Borgan & Salvanes, Kari Vea & Sandsør, Astrid Marie Jorde & Strøm, Bjarne, 2021. "The effect of central government grants on local educational policy," European Journal of Political Economy, Elsevier, vol. 69(C).
    3. Nagler, Markus & Piopiunik, Marc & West, Martin R., 2015. "Weak Markets, Strong Teachers," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112949, Verein für Socialpolitik / German Economic Association.
    4. Braga, Michela & Checchi, Daniele & Scervini, Francesco & Garrouste, Christelle, 2020. "Selecting or rewarding teachers? International evidence from primary schools," Economics of Education Review, Elsevier, vol. 76(C).
    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. Falch, Torberg & Johansen, Kåre & Strøm, Bjarne, 2009. "Teacher shortages and the business cycle," Labour Economics, Elsevier, vol. 16(6), pages 648-658, December.
    7. Marina Albanese & Francesco Busato & Gianluigi Cisco, 2023. "Greening human capital and business cycle: The role of educational policies," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 0(1), pages 129-138.
    8. Torberg Falch & Astrid Marie Jorde Sandsør & Bjarne Strøm, 2017. "Do Smaller Classes Always Improve Students’ Long-run Outcomes?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(5), pages 654-688, October.
    9. Fraenkel, Rebecca Cannon, 2022. "Local labor markets and job match quality: Teachers," Labour Economics, Elsevier, vol. 78(C).
    10. Chen, Feng & Harris, Douglas N. & Penn, Mary, 2024. "The effects of charter school entry on the supply of teachers from university-based education programs," Economics of Education Review, Elsevier, vol. 99(C).
    11. Torberg Falch & Bjarne Strøm, 2021. "Mobility of novice teachers," Working Paper Series 19121, Department of Economics, Norwegian University of Science and Technology.
    12. Terhi Maczulskij, 2016. "Higher education and public sector employment: evidence from Finnish data on twins," International Review of Applied Economics, Taylor & Francis Journals, vol. 30(5), pages 605-619, September.
    13. Maczulskij, Terhi, 2013. "Public–private sector wage differentials and the business cycle," Economic Systems, Elsevier, vol. 37(2), pages 284-301.
    14. By Marianne Haraldsvik & Bjarne Strøm, 2022. "Adult skills and labor market conditions during teenage years: cross-country evidence from international surveys [Is post-secondary education a safe port and for whom? Evidence from Canadian data]," Oxford Economic Papers, Oxford University Press, vol. 74(3), pages 894-919.

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