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The Effects of Salaries and Opportunity Costs on Length of Stay in Teaching: Evidence from North Carolina


  • Richard J. Murnane
  • Randall J. Olsen


This paper shows that teachers who are paid more stay longer in teaching, that teachers with high opportunity costs, as measured by test scores and subject specialties, stay in teaching less long than other teachers do, and that salaries influence duration less for teachers with high test scores than for teachers with lower scores. The research is based on a new longitudinal dataset providing information on the career histories of 13,890 North Carolina teachers. The empirical work uses a generalized least squares estimation technique that accommodates censored observations, time-varying covariates, and fixed effects.

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  • Richard J. Murnane & Randall J. Olsen, 1990. "The Effects of Salaries and Opportunity Costs on Length of Stay in Teaching: Evidence from North Carolina," Journal of Human Resources, University of Wisconsin Press, vol. 25(1), pages 106-124.
  • Handle: RePEc:uwp:jhriss:v:25:y:1990:i:1:p:106-124

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    References listed on IDEAS

    1. Davidson, Carl & Woodbury, Stephen A, 1993. "The Displacement Effect of Reemployment Bonus Programs," Journal of Labor Economics, University of Chicago Press, vol. 11(4), pages 575-605, October.
    2. Woodbury, Stephen A & Spiegelman, Robert G, 1987. "Bonuses to Workers and Employers to Reduce Unemployment: Randomized Trials in Illinois," American Economic Review, American Economic Association, vol. 77(4), pages 513-530, September.
    3. Paul T. Decker & Christopher J. L'Leary, 1995. "Evaluating Pooled Evidence from the Reemployment Bonus Experiments," Journal of Human Resources, University of Wisconsin Press, vol. 30(3), pages 534-550.
    4. Christopher J. O'Leary & Robert G. Spiegelman & Kenneth J. Kline, 1995. "Do bonus offers shorten unemployment insurance spells? results from the washington experiment," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 14(2), pages 245-269.
    5. Walter Corson & Paul T. Decker & Shari Miller Dunstan & Anne R. Gordon, "undated". "The New Jersey Unemployment Insurance Reemployment Demonstration Project: Final Evaluation Report," Mathematica Policy Research Reports a1188b0b75ad4085ab98457be, Mathematica Policy Research.
    6. repec:mpr:mprres:1978 is not listed on IDEAS
    7. repec:mpr:mprres:3003 is not listed on IDEAS
    8. Robert B. Olsen & Marisa Kelso & Paul T. Decker & Daniel H. Klepinger, 2002. "Predicting the Exhaustion of Unemployment Compensation," Mathematica Policy Research Reports d0a9027f813a4bc397fce1190, Mathematica Policy Research.
    9. Bruce D. Meyer, 1995. "Lessons from the U.S. Unemployment Insurance Experiments," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 91-131, March.
    10. repec:mpr:mprres:856 is not listed on IDEAS
    11. Paul T. Decker, "undated". "Work Incentives and Disincentives," Mathematica Policy Research Reports e09c4ee64359405c8a52e13c4, Mathematica Policy Research.
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