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Teacher Pension Plan Incentives, Retirement Decisions, and Workforce Quality

Author

Listed:
  • Shawn Ni

    (Department of Economics, University of Missouri-Columbia)

  • Michael Podgursky

    (Department of Economics, University of Missouri-Columbia)

  • Xiqian Wang

    (Department of Economics, University of Missouri-Columbia)

Abstract

We analyze late-career teacher turnover induced by pension incentives. Using longitudinal data with performance measures for Tennessee public school teachers, we find higher quality teachers are less likely to retire conditional on age and experience. To quantify the effects of pension incentives, we estimate a structural model for retirement and find that high quality teachers have a lower disutility for teaching relative to retirement. We use the structural estimates to simulate the effect of changes in retirement incentives. Enhancements to traditional plans accelerate teacher retirement, whereas targeted retention bonuses delay retirement and retain high quality teachers at relatively modest cost.

Suggested Citation

  • Shawn Ni & Michael Podgursky & Xiqian Wang, 2018. "Teacher Pension Plan Incentives, Retirement Decisions, and Workforce Quality," Working Papers 1815, Department of Economics, University of Missouri.
    • Handle: RePEc:umc:wpaper:1815
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    More about this item

    Keywords

    Teacher Pensions; Teacher Quality; Teacher Retirement;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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