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Teacher Labor Market Policy and the Theory of the Second Best

Author

Listed:
  • Michael D. Bates
  • Michael Dinerstein
  • Andrew C. Johnston
  • Isaac Sorkin

Abstract

We estimate a matching model of teachers and elementary schools with rich data on teacher applications and principal ratings from a large, urban district in North Carolina. Both teachers’ and principals’ preferences deviate from those that would maximize the achievement of economically disadvantaged students: teachers prefer schools with fewer disadvantaged students, and principal ratings are weakly related to teacher effectiveness. In equilibrium, these two deviations combine to produce a surprisingly equitable current allocation, where teacher quality is balanced across advantaged and disadvantaged students. To close achievement gaps, policies that address deviations on one side alone are ineffective or harmful, while policies that address both could substantially increase the achievement of disadvantaged students.

Suggested Citation

  • Michael D. Bates & Michael Dinerstein & Andrew C. Johnston & Isaac Sorkin, 2022. "Teacher Labor Market Policy and the Theory of the Second Best," NBER Working Papers 29728, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:29728
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    Cited by:

    1. Delgado, William, 2025. "Disparate teacher effects, comparative advantage, and match quality," Economics of Education Review, Elsevier, vol. 106(C).
    2. García-Echalar, Andrés & Poblete, Sebastián & Rau, Tomás, 2024. "Teacher value-added and the test score gender gap," Labour Economics, Elsevier, vol. 89(C).
    3. Mariana Laverde & Elton Mykerezi & Aaron Sojourner & Aradhya Sood, 2023. "Gains from Reassignment: Evidence from A Two-Sided Teacher Market," Upjohn Working Papers 23-392, W.E. Upjohn Institute for Employment Research.

    More about this item

    JEL classification:

    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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