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Union Reform, Performance Pay, and New Teacher Supply: Evidence from Wisconsin's Act 10

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  • E. Jason Baron

    (Department of Economics, Florida State University)

Abstract

This study examines the impact of performance pay on teacher selection. I exploit a shift toward performance pay in Wisconsin induced by the enactment of Act 10, which gave school districts autonomy to redesign their compensation schemes. Following the law, half of Wisconsin school districts eliminated salary schedules and started negotiating pay with individual teachers based on performance. Comparing the quantity of teaching degrees in Wisconsin institutions before and after Act 10, and relative to those in similar states, I find that Act 10 led to a 20\% increase in teaching degrees. This effect was entirely driven by selective universities.

Suggested Citation

  • E. Jason Baron, 2019. "Union Reform, Performance Pay, and New Teacher Supply: Evidence from Wisconsin's Act 10," Working Papers wp2019_01_01, Department of Economics, Florida State University.
    • Handle: RePEc:fsu:wpaper:wp2019_01_01
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    File URL: https://coss.fsu.edu/econpapers/wpaper/wp2019_01_01.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

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    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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