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

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Abstract

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.

Suggested Citation

  • Cory Koedel & Michael Podgursky, 2011. "Teacher Pension Systems, the Composition of the Teaching Workforce, and Teacher Quality," Working Papers 1109, Department of Economics, University of Missouri, revised 10 Apr 2012.
  • Handle: RePEc:umc:wpaper:1109 Note: Length: 38 pgs.
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    File URL: https://economics.missouri.edu/working-papers/2011/wp1109_koedel.pdf
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    References listed on IDEAS

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    1. Jesse Rothstein, 2010. "Teacher Quality in Educational Production: Tracking, Decay, and Student Achievement," The Quarterly Journal of Economics, Oxford University Press, vol. 125(1), pages 175-214.
    2. Leora Friedberg & Michael T. Owyang, 2004. "Explaining the evolution of pension structure and job tenure," Working Papers 2002-022, Federal Reserve Bank of St. Louis.
    3. 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 267-271, May.
    4. 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.
    5. Fane Groes & Philipp Kircher & Iourii Manovskii, 2015. "The U-Shapes of Occupational Mobility," Review of Economic Studies, Oxford University Press, vol. 82(2), pages 659-692.
    6. 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.
    7. 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.
    8. Cory Koedel & Julian R. Betts, 2011. "Does Student Sorting Invalidate Value-Added Models of Teacher Effectiveness? An Extended Analysis of the Rothstein Critique," Education Finance and Policy, MIT Press, vol. 6(1), pages 18-42, January.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
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    Cited by:

    1. Dongwoo Kim & Cory Koedel & Shawn Ni & Michael Podgursky & Weiwei Wu, 2016. "Pensions and Late-Career Teacher Retention," Working Papers 2016-08, Department of Economics, University of Missouri, revised Jul 2017.
    2. Cory Koedel & Shawn Ni & Michael Podgursky, 2014. "Who Benefits from Pension Enhancements?," Education Finance and Policy, MIT Press, vol. 9(2), pages 165-192, March.
    3. Fitzpatrick, Maria D., 2014. "Retiree health insurance for public school employees: Does it affect retirement?," Journal of Health Economics, Elsevier, vol. 38(C), pages 88-98.
    4. Barbara Bruns & Javier Luque, 2015. "Great Teachers : How to Raise Student Learning in Latin America and the Caribbean," World Bank Publications, The World Bank, number 20488.
    5. Martin F. Lueken & Michael Podgursky, 2016. "Determinants of Cashing Out: A Behavioral Analysis of Refund Claimants and Annuitants in the Illinois Teachers Retirement System," Working Papers 1605, Department of Economics, University of Missouri.
    6. Maria D. Fitzpatrick & Michael F. Lovenheim, 2014. "Early Retirement Incentives and Student Achievement," American Economic Journal: Economic Policy, American Economic Association, vol. 6(3), pages 120-154, August.
    7. Dan Goldhaber & Cyrus Grout, 2016. "Pension Choices and the Savings Patterns of Public School Teachers," Education Finance and Policy, MIT Press, vol. 11(4), pages 449-481, Fall.

    More about this item

    Keywords

    Educator Pensions; Teacher Pensions; Backloaded Compensation; Teacher Pensions and Teacher Quality; Teacher Compensation; Selection into Teaching;

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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