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Teacher mobility responses to wage changes: evidence from quasi-natural experiment

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  • Torberg Falch

    (Department of Economics, Norwegian University of Science and Technology)

Abstract

This paper utilizes a Norwegian experiment with exogenous wage changes to study teacher’s turnover decisions. Within a completely centralized wage setting system, teachers in schools with a high degree of teacher vacancies in the past got a wage premium of about 10 percent during the period 1993-94 to 2002-03. The empirical strategy exploits that several schools switched status during the empirical period. In a fixed effects framework, the wage premium reduces the probability to quit by 6-7 percentage points and increases recruitment by 4-7 percentage points.

Suggested Citation

  • Torberg Falch, 2010. "Teacher mobility responses to wage changes: evidence from quasi-natural experiment," Working Paper Series 10910, Department of Economics, Norwegian University of Science and Technology.
  • Handle: RePEc:nst:samfok:10910
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    References listed on IDEAS

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    1. Clotfelter, Charles & Glennie, Elizabeth & Ladd, Helen & Vigdor, Jacob, 2008. "Would higher salaries keep teachers in high-poverty schools? Evidence from a policy intervention in North Carolina," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1352-1370, June.
    2. Bonesronning, Hans & Falch, Torberg & Strom, Bjarne, 2005. "Teacher sorting, teacher quality, and student composition," European Economic Review, Elsevier, vol. 49(2), pages 457-483, February.
    3. Torberg Falch, 2010. "The Elasticity of Labor Supply at the Establishment Level," Journal of Labor Economics, University of Chicago Press, vol. 28(2), pages 237-266, April.
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    Cited by:

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    3. Gjefsen, Hege Marie, 2020. "Wages, teacher recruitment, and student achievement," Labour Economics, Elsevier, vol. 65(C).
    4. Oberfichtner, Michael & Hirsch, Boris & Jahn, Elke J., 2015. "The urban wage premium in imperfect labour markets," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113003, Verein für Socialpolitik / German Economic Association.
    5. Ernesto Dal Bó & Frederico Finan & Martín A. Rossi, 2013. "Strengthening State Capabilities: The Role of Financial Incentives in the Call to Public Service," The Quarterly Journal of Economics, Oxford University Press, vol. 128(3), pages 1169-1218.
    6. David Card & Ana Rute Cardoso & Joerg Heining & Patrick Kline, 2018. "Firms and Labor Market Inequality: Evidence and Some Theory," Journal of Labor Economics, University of Chicago Press, vol. 36(S1), pages 13-70.
    7. Li, Xiaowei & Guo, Yuanfang & Zhou, Siyu, 2021. "Chinese preschool teachers’ income, work-family conflict, organizational commitment, and turnover intention: A serial mediation model," Children and Youth Services Review, Elsevier, vol. 128(C).
    8. Clémence Berson, 2016. "Local labor markets and taste-based discrimination," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-21, December.
    9. Michael Bates & Michael Dinerstein & Andrew C. Johnston & Isaac Sorkin, 2022. "Teacher Labor Market Equilibrium and Student Achievement," CESifo Working Paper Series 9551, CESifo.
    10. Richard Cebula & Franklin Mixon & Mark Montez, 2015. "Teachers’ salaries and human capital, and their effects on academic performance: an institution-level analysis of Los Angeles County high schools," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 39(2), pages 347-356, April.
    11. Fabio Méndez & Facundo Sepúlveda, 2019. "Monopsony Power in Occupational Labor Markets," Journal of Labor Research, Springer, vol. 40(4), pages 387-411, December.
    12. Arindrajit Dube & Laura Giuliano & Jonathan Leonard, 2019. "Fairness and Frictions: The Impact of Unequal Raises on Quit Behavior," American Economic Review, American Economic Association, vol. 109(2), pages 620-663, February.
    13. Manning, Alan, 2011. "Imperfect Competition in the Labor Market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 11, pages 973-1041, Elsevier.
    14. Corneo, Giacomo, 2013. "Die relative Bezahlung der Hochqualifizierten in Staat und Privatwirtschaft: Deutschland, 1977-2011," Discussion Papers 2013/19, Free University Berlin, School of Business & Economics.
    15. Grönqvist, Erik & Hensvik, Lena & Thoresson, Anna, 2020. "Teacher career opportunities and school quality," Working Paper Series 2020:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    16. Boris Hirsch & Elke J. Jahn & Alan Manning & Michael Oberfichtner, 2022. "The Urban Wage Premium in Imperfect Labor Markets," Journal of Human Resources, University of Wisconsin Press, vol. 57(S), pages 111-136.
    17. Ajzenman, Nicolas & Elacqua, Gregory & Marotta, Luana & Olsen, Anne Sofie, 2021. "Order Effects and Employment Decisions: Experimental Evidence from a Nationwide Program," IZA Discussion Papers 14690, Institute of Labor Economics (IZA).
    18. Geraldo Andrade Da Silva Filho & Cristine Campos De Xavier Pinto & Marcel De Toledo Vieira, 2016. "Does Money Move Teachers?," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42nd Brazilian Economics Meeting] 240, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    19. Karbownik, Krzysztof, 2014. "The determinants of teacher mobility in Sweden," Working Paper Series 2014:13, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    20. Torberg Falch, 2013. "Wages and Recruitment: Evidence from External Wage Changes," CESifo Working Paper Series 4078, CESifo.
    21. Berlinski, Samuel & Ramos, Alejandra, 2020. "Teacher mobility and merit pay: Evidence from a voluntary public award program," Journal of Public Economics, Elsevier, vol. 186(C).
    22. Torberg Falch & Bjarne Strøm, 2021. "Mobility of novice teachers," Working Paper Series 19121, Department of Economics, Norwegian University of Science and Technology.

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