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School competition and teacher labor markets: Evidence from charter school entry in North Carolina

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  • Jackson, C. Kirabo

Abstract

I analyze changes in teacher turnover, hiring, effectiveness, and salaries at traditional public schools after the opening of a nearby charter school. While I find small effects on turnover overall, difficult to staff schools (low-income, high-minority share) hired fewer new teachers and experienced small declines in teacher quality. I also find evidence of a demand side response where schools increased teacher compensation to better retain quality teachers. The results are robust across a variety of alternate specifications to account for non-random charter entry.

Suggested Citation

  • Jackson, C. Kirabo, 2012. "School competition and teacher labor markets: Evidence from charter school entry in North Carolina," Journal of Public Economics, Elsevier, vol. 96(5), pages 431-448.
  • Handle: RePEc:eee:pubeco:v:96:y:2012:i:5:p:431-448
    DOI: 10.1016/j.jpubeco.2011.12.006
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    References listed on IDEAS

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    1. Hanushek, Eric A. & Kain, John F. & Rivkin, Steven G. & Branch, Gregory F., 2007. "Charter school quality and parental decision making with school choice," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 823-848, June.
    2. Milton Friedman, 1997. "Public Schools: Make Them Private," Education Economics, Taylor & Francis Journals, vol. 5(3), pages 341-344.
    3. C. Kirabo Jackson, 2013. "Match Quality, Worker Productivity, and Worker Mobility: Direct Evidence from Teachers," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1096-1116, October.
    4. Robert Bifulco & Helen F. Ladd, 2006. "The Impacts of Charter Schools on Student Achievement: Evidence from North Carolina," Education Finance and Policy, MIT Press, vol. 1(1), pages 50-90, January.
    5. 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.
    6. Thomas J. Kane & Douglas O. Staiger, 2008. "Estimating Teacher Impacts on Student Achievement: An Experimental Evaluation," NBER Working Papers 14607, National Bureau of Economic Research, Inc.
    7. Caroline M. Hoxby, 2000. "Does Competition among Public Schools Benefit Students and Taxpayers?," American Economic Review, American Economic Association, vol. 90(5), pages 1209-1238, December.
    8. Dee, Thomas S., 1998. "Competition and the quality of public schools," Economics of Education Review, Elsevier, vol. 17(4), pages 419-427, October.
    9. Imberman, Scott A., 2011. "The effect of charter schools on achievement and behavior of public school students," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 850-863, August.
    10. Eric A. Hanushek & John F. Kain & Steven G. Rivkin & Daniel M. O'Brien, 2005. "The Market for Teacher Quality," Discussion Papers 04-025, Stanford Institute for Economic Policy Research.
    11. Bettinger, Eric P., 2005. "The effect of charter schools on charter students and public schools," Economics of Education Review, Elsevier, vol. 24(2), pages 133-147, April.
    12. 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.
    13. Caroline M. Hoxby, 2002. "Would School Choice Change the Teaching Profession?," Journal of Human Resources, University of Wisconsin Press, vol. 37(4), pages 846-891.
    14. C. Kirabo Jackson & Elias Bruegmann, 2009. "Teaching Students and Teaching Each Other: The Importance of Peer Learning for Teachers," American Economic Journal: Applied Economics, American Economic Association, vol. 1(4), pages 85-108, October.
    15. Scott A. Imberman, 2011. "Achievement and Behavior in Charter Schools: Drawing a More Complete Picture," The Review of Economics and Statistics, MIT Press, vol. 93(2), pages 416-435, May.
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    17. Gregory, Robert G. & Borland, Jeff, 1999. "Recent developments in public sector labor markets," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 53, pages 3573-3630 Elsevier.
    18. Jesse Rothstein, 2007. "Does Competition Among Public Schools Benefit Students and Taxpayers? Comment," American Economic Review, American Economic Association, vol. 97(5), pages 2026-2037, December.
    19. Petra E. Todd & Kenneth I. Wolpin, 2003. "On The Specification and Estimation of The Production Function for Cognitive Achievement," Economic Journal, Royal Economic Society, vol. 113(485), pages 3-33, February.
    20. Richard Vedder & Joshua Hall, 2000. "Private School Competition and Public School Teacher Salaries," Journal of Labor Research, Transaction Publishers, vol. 21(1), pages 162-168, January.
    21. C. Kirabo Jackson, 2009. "Student Demographics, Teacher Sorting, and Teacher Quality: Evidence from the End of School Desegregation," Journal of Labor Economics, University of Chicago Press, vol. 27(2), pages 213-256, April.
    22. Eric A. Hanushek & Steven G. Rivkin, 2003. "Does Public School Competition Affect Teacher Quality?," NBER Chapters,in: The Economics of School Choice, pages 23-48 National Bureau of Economic Research, Inc.
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    24. Tim R. Sass, 2006. "Charter Schools and Student Achievement in Florida," Education Finance and Policy, MIT Press, vol. 1(1), pages 91-122, January.
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    Citations

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    Cited by:

    1. Feng, Li & Figlio, David & Sass, Tim, 2018. "School accountability and teacher mobility," Journal of Urban Economics, Elsevier, vol. 103(C), pages 1-17.
    2. Figlio, D. & Karbownik, K. & Salvanes, K.G., 2016. "Education Research and Administrative Data," Handbook of the Economics of Education, Elsevier.
    3. Yusuke Jinnai, 2015. "How Does School Choice Improve Student Achievement? Estimating School-level Competitive Effects and Student-level Peer Effects," Working Papers EMS_2016_09, Research Institute, International University of Japan.
    4. C. Kirabo Jackson, 2014. "Teacher Quality at the High School Level: The Importance of Accounting for Tracks," Journal of Labor Economics, University of Chicago Press, vol. 32(4), pages 645-684.
    5. Michela Tincani, 2014. "School Vouchers and the Joint Sorting of Students and Teachers," Working Papers 2014-012, Human Capital and Economic Opportunity Working Group.
    6. Will Dobbie & Roland G. Fryer, 2016. "Charter Schools and Labor Market Outcomes," Working Papers 600, Princeton University, Department of Economics, Industrial Relations Section..
    7. Karbownik, Krzysztof, 2014. "Do changes in student quality affect teacher mobility? Evidence from an admission reform," Working Paper Series 2014:15, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    8. repec:eee:pubeco:v:158:y:2018:i:c:p:48-62 is not listed on IDEAS
    9. Dennis Epple & Richard Romano & Ron Zimmer, 2015. "Charter Schools: A Survey of Research on Their Characteristics and Effectiveness," NBER Working Papers 21256, National Bureau of Economic Research, Inc.
    10. Will S. Dobbie & Roland G. Fryer, Jr, 2016. "Charter Schools and Labor Market Outcomes," NBER Working Papers 22502, National Bureau of Economic Research, Inc.
    11. Jacob Fowles, 2016. "Salaries in Space," Public Finance Review, , vol. 44(4), pages 523-548, July.

    More about this item

    Keywords

    Teacher quality; Teacher labor markets; Charter schools; School competition;

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J00 - Labor and Demographic Economics - - General - - - General
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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