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Preferences, Inequities, and Incentives in the Substitute Teacher Labor Market

Author

Listed:
  • Matthew A. Kraft
  • Megan Lane Conklin
  • Grace T. Falken

Abstract

We examine the labor supply decisions of substitute teachers – a large, on-demand market with broad shortages and inequitable supply. In 2018, Chicago Public Schools implemented a targeted bonus program designed to reduce unfilled teacher absences in largely segregated Black schools with historically low substitute coverage rates. Using a regression discontinuity design, we find that incentive pay substantially improved coverage equity and raised student achievement. Changes in labor supply were concentrated among Black and Hispanic substitutes from nearby neighborhoods with experience in incentive schools. Wage elasticity estimates suggest incentives would need to be 50% of daily wages to close fill-rate gaps.

Suggested Citation

  • Matthew A. Kraft & Megan Lane Conklin & Grace T. Falken, 2022. "Preferences, Inequities, and Incentives in the Substitute Teacher Labor Market," NBER Working Papers 30714, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:30714
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    More about this item

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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