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Teacher Pension Enhancements and Staffing in an Urban School District

Author

Listed:
  • Shawn Ni

    (University of Missouri)

  • Michael Podgursky

    (Sinquefield Center for Applied Economic Research, Saint Louis University)

  • Xiqan Wang

    (Beijing University of Technology)

Abstract

Many states enhanced benefits in teacher retirement plans during the 1990s. This paper examines the school staffing effects of one such enhancement in a major urban school district with mostly high poverty schools. Pension rule changes in 1999 for St. Louis public school teachers resulted in large increases in pension wealth for active teachers, as well as a powerful increase in “push” incentives for earlier retirement. Simple descriptive statistics on retirement patterns before and after the enhancements suggest much earlier retirement resulted. Shorter teaching spells imply a steady state with more teacher turnover and a larger share of novice teachers in classrooms. To better understand the long run effects of these changes and alternatives policies, the authors estimate a structural model of teacher retirement. Simulations of retirement behavior for representative senior teachers point to shorter completed teaching spells and earlier retirement age as a result of the enhancements. By contrast, moving from the post-1999 to a DC-type plan would extend the teaching career of a representative senior teacher by roughly two years.

Suggested Citation

  • Shawn Ni & Michael Podgursky & Xiqan Wang, 2021. "Teacher Pension Enhancements and Staffing in an Urban School District," Working Papers 21-1, Sinquefield Center for Applied Economic Research, Saint Louis University.
    • Handle: RePEc:ris:sluecr:2021_001
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    Cited by:

    1. Knapp, David & Hosek, James & Mattock, Michael G. & Asch, Beth J., 2023. "Predicting teacher retention behavior: Ex ante prediction and ex post realization of a voluntary retirement incentive offer," Economics of Education Review, Elsevier, vol. 93(C).

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    Keywords

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    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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