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Pension-Induced Rigidities in the Labor Market for School Leaders

  • Cory Koedel
  • Jason A. Grissom
  • Shawn Ni
  • Michael Podgursky

Educators in public schools in the United States are typically enrolled in defined-benefit pension plans, which penalize across-plan mobility. We use administrative data from Missouri to examine how the mobility penalties affect the labor market for school leaders. We show that pension borders greatly affect leadership flows across schools – for two groups of schools separated by a pension border, our estimates indicate that removing the border will increase leadership mobility between them by 97 to 163 percent. We consider the implications of the pension-induced rigidities in the leadership labor market for schools near pension borders in Missouri. Our findings are of general interest given that thousands of public schools operate near pension boundaries nationwide.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3605.

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Date of creation: 2011
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Handle: RePEc:ces:ceswps:_3605
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  1. Angrist, Joshua & Dynarski, Susan & Kane, Thomas J. & Pathak, Parag A. & Walters, Christopher R., 2011. "Who Benefits from KIPP?," IZA Discussion Papers 5690, Institute for the Study of Labor (IZA).
  2. Dhuey, Elizabeth & Smith, Justin, 2011. "How Important are School Principals in the Production of Student Achievement?," CLSSRN working papers clsrn_admin-2011-33, Vancouver School of Economics, revised 23 Dec 2011.
  3. Coelli, Michael & Green, David A., 2012. "Leadership effects: school principals and student outcomes," Economics of Education Review, Elsevier, vol. 31(1), pages 92-109.
  4. Brewer, Dominic J., 1993. "Principals and student outcomes: Evidence from U.S. high schools," Economics of Education Review, Elsevier, vol. 12(4), pages 281-292, December.
  5. C. Kirabo Jackson, 2010. "Match Quality, Worker Productivity, and Worker Mobility: Direct Evidence From Teachers," NBER Working Papers 15990, National Bureau of Economic Research, Inc.
  6. Eric J. Bartelsman & Mark Doms, 2000. "Understanding productivity: lessons from longitudinal microdata," Finance and Economics Discussion Series 2000-19, Board of Governors of the Federal Reserve System (U.S.).
  7. Gale, William G, 1994. "Public Policies and Private Pension Contributions," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 26(3), pages 710-32, August.
  8. Mortensen, Dale T. & Pissarides, Christopher A., 1999. "New developments in models of search in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 39, pages 2567-2627 Elsevier.
  9. Courtney Coile & Jonathan Gruber, 2007. "Future Social Security Entitlements and the Retirement Decision," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 234-246, May.
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