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Teacher Quality Policy When Supply Matters

  • Jesse Rothstein

Recent proposals would strengthen the dependence of teacher pay and retention on performance, in order to attract those who will be effective teachers and repel those who will not. I model the teacher labor market, incorporating dynamic self-selection, noisy performance measurement, and Bayesian learning. Simulations indicate that labor market interactions are important to the evaluation of alternative teacher contracts. Typical bonus policies have very small effects on selection. Firing policies can have larger effects, if accompanied by substantial salary increases. However, misalignment between productivity and measured performance nearly eliminates the benefits while preserving most of the costs.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 18419.

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Date of creation: Sep 2012
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Publication status: published as Jesse Rothstein, 2015. "Teacher Quality Policy When Supply Matters," American Economic Review, American Economic Association, vol. 105(1), pages 100-130, January.
Handle: RePEc:nbr:nberwo:18419
Note: CH ED LS
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  1. Roland G. Fryer, 2011. "Teacher Incentives and Student Achievement: Evidence from New York City Public Schools," NBER Working Papers 16850, National Bureau of Economic Research, Inc.
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  16. Roland G. Fryer, Jr & Steven D. Levitt & John List & Sally Sadoff, 2012. "Enhancing the Efficacy of Teacher Incentives through Loss Aversion: A Field Experiment," NBER Working Papers 18237, National Bureau of Economic Research, Inc.
  17. Jesse Rothstein, 2008. "Student Sorting and Bias in Value Added Estimation: Selection on Observables and Unobservables," Working Papers 1054, Princeton University, Department of Economics, Center for Economic Policy Studies..
  18. Esther Duflo & Rema Hanna & Stephen P. Ryan, 2012. "Incentives Work: Getting Teachers to Come to School," American Economic Review, American Economic Association, vol. 102(4), pages 1241-78, June.
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  20. Peter Dolton & Wilbert van der Klaauw, 1999. "The Turnover of Teachers: A Competing Risks Explanation," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 543-550, August.
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