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Local Labor Markets and Selection into the Teaching Profession

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Abstract

Using administrative data from Texas, I track individuals from high school through college to the workforce to determine the effects of local labor markets on occupational choice. I find local labor market conditions are countercyclical with selection into teaching and have a larger influence when experienced during high school. Individuals sorting into teaching because of poor local labor market conditions are of higher ability (standardized tests) and have higher productivity (value-added). The findings suggest that local labor market fluctuations shape career decisions well before individuals participate in the labor market, and that increasing the relative economic standing of teaching as a career has the potential to improve the future supply of teachers.

Suggested Citation

  • Deneault Christa, 2025. "Local Labor Markets and Selection into the Teaching Profession," Working Papers 2522, Federal Reserve Bank of Dallas.
    • Handle: RePEc:fip:feddwp:100075
    DOI: 10.24149/wp2522
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    Cited by:

    1. de Koning, Bart K. & Fouarge, Didier & Dur, Robert, 2025. "Correcting Beliefs About Job Opportunities and Wages: A Field Experiment on Education Choices," IZA Discussion Papers 17951, Institute of Labor Economics (IZA).

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    Keywords

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    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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