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Self-selection in the market of teachers


  • Juan A. Correa
  • Francisco Parro
  • Loreto Reyes


Public school teachers are usually paid according to centralized earning schedules, in which their income depends mainly on experience. By contrast, in private schools, there is high wage dispersion, and salaries correspond mainly to teachers' performance. That dichotomous labour regulation encourages teachers with better unobservable skills to self-select into private schools because the likelihood of earning higher wages is higher than in public schools. The other side of the coin is the self-selection of 'bad' teachers into public schools. Using a representative sample of Chilean teachers, we estimate a two-sector Roy model to test self-selection. We find evidence of negative self-selection of teachers into public schools.

Suggested Citation

  • Juan A. Correa & Francisco Parro & Loreto Reyes, 2015. "Self-selection in the market of teachers," Applied Economics, Taylor & Francis Journals, vol. 47(13), pages 1331-1349, March.
  • Handle: RePEc:taf:applec:v:47:y:2015:i:13:p:1331-1349
    DOI: 10.1080/00036846.2014.995365

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    Cited by:

    1. Jere R. Behrman & Michela M. Tincani & Petra E. Todd & Kenneth I. Wolpin, 2016. "Teacher Quality in Public and Private Schools under a Voucher System: The Case of Chile," Journal of Labor Economics, University of Chicago Press, vol. 34(2), pages 319-362.
    2. Michela Tincani, 2014. "School Vouchers and the Joint Sorting of Students and Teachers," Working Papers 2014-012, Human Capital and Economic Opportunity Working Group.
    3. Parro, Francisco & Reyes, Loreto, 2013. "The Chilean Labor Market: Job Creation, Quality, Inclusiveness, and Future Challenges," MPRA Paper 50755, University Library of Munich, Germany.

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