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Teacher Pension Systems, the Composition of the Teaching Workforce, and Teacher Quality

Teacher pension systems impose large penalties on individuals who separate too soon or remain employed too long. The penalties result in the retention of some teachers who would otherwise choose to leave, and the premature exit of some teachers who would otherwise choose to stay. We examine how these compositional effects of teacher pension systems influence the quality of the teaching workforce, conditional on individuals who initially select into teaching. We find no evidence that the pull and push incentives raise teacher quality, and if anything, we find modest negative effects. Our results support future experimentation with compensation schemes for educators that are not so heavily backloaded.

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File URL: https://economics.missouri.edu/working-papers/2011/wp1109_koedel.pdf
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Paper provided by Department of Economics, University of Missouri in its series Working Papers with number 1109.

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Date of creation: 31 Aug 2011
Date of revision: 10 Apr 2012
Handle: RePEc:umc:wpaper:1109
Note: Length: 38 pgs.
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  1. Harris, Douglas N. & Adams, Scott J., 2007. "Understanding the level and causes of teacher turnover: A comparison with other professions," Economics of Education Review, Elsevier, vol. 26(3), pages 325-337, June.
  2. Cory Koedel & Julian Betts, 2009. "Does Student Sorting Invalidate Value-Added Models of Teacher Effectiveness? An Extended Analysis of the Rothstein Critique," Working Papers 0902, Department of Economics, University of Missouri.
  3. Daniel Aaronson & Lisa Barrow & William Sander, 2007. "Teachers and Student Achievement in the Chicago Public High Schools," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 95-135.
  4. Donald Boyd & Pam Grossman & Hamilton Lankford & Susanna Loeb & James Wyckoff, 2008. "Who Leaves? Teacher Attrition and Student Achievement," NBER Working Papers 14022, National Bureau of Economic Research, Inc.
  5. Jesse Rothstein, 2008. "Teacher Quality in Educational Production: Tracking, Decay, and Student Achievement," NBER Working Papers 14442, National Bureau of Economic Research, Inc.
  6. Eric A. Hanushek & Steven G. Rivkin, 2010. "Generalizations about Using Value-Added Measures of Teacher Quality," American Economic Review, American Economic Association, vol. 100(2), pages 267-71, May.
  7. Robert M. Costrell & Michael Podgursky, 2009. "Peaks, Cliffs, and Valleys: The Peculiar Incentives in Teacher Retirement Systems and Their Consequences for School Staffing," Education Finance and Policy, MIT Press, vol. 4(2), pages 175-211, April.
  8. Matthew Ronfeldt & Hamilton Lankford & Susanna Loeb & James Wyckoff, 2011. "How Teacher Turnover Harms Student Achievement," NBER Working Papers 17176, National Bureau of Economic Research, Inc.
  9. Leora Friedberg & Michael Owyang, 2004. "Explaining the Evolution of Pension Structure and Job Tenure," NBER Working Papers 10714, National Bureau of Economic Research, Inc.
  10. Courtney Coile & Jonathan Gruber, 2007. "Future Social Security Entitlements and the Retirement Decision," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 234-246, May.
  11. Sass, Tim R. & Semykina, Anastasia & Harris, Douglas N., 2014. "Value-added models and the measurement of teacher productivity," Economics of Education Review, Elsevier, vol. 38(C), pages 9-23.
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