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The Labor Market for Teachers Under Different Pay Schemes

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  • Barbara Biasi

Abstract

Compensation of most US public school teachers is rigid and solely based on seniority. This paper studies the labor market effects of a reform that gave school districts in Wisconsin full autonomy to redesign teacher pay schemes. Following the reform, some districts switched to flexible compensation and started paying high-quality teachers more. Teacher quality increased in these districts relative to those with seniority pay due to a change in workforce composition and an increase in effort. I estimate a structural model of this labor market to investigate the effects of counterfactual pay schemes on the composition of the teaching workforce.

Suggested Citation

  • Barbara Biasi, 2018. "The Labor Market for Teachers Under Different Pay Schemes," NBER Working Papers 24813, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:24813
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    Cited by:

    1. 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.
    2. repec:eee:ecoedu:v:67:y:2018:i:c:p:40-57 is not listed on IDEAS
    3. Mookerjee, Sulagna & Slichter, David, 2018. "Test Scores, Schools, and the Geography of Economic Opportunity," MPRA Paper 89101, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • 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
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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