The Effect of Employment Protection on Worker Effort: Evidence from Public Schooling

59 Pages Posted: 25 Jan 2010 Last revised: 6 Feb 2010

See all articles by Brian Jacob

Brian Jacob

Harvard University - Harvard Kennedy School (HKS); National Bureau of Economic Research (NBER)

Date Written: February 2010

Abstract

This paper studies the effect of employment protection on worker productivity and firm output in the context of a public school system. In 2004, the Chicago Public Schools (CPS) and Chicago Teachers Union (CTU) signed a new collective bargaining agreement that gave principals the flexibility to dismiss probationary teachers (defined as those with less than five years of experience) for any reason, and without the elaborate documentation and hearing process typical in many large, urban school districts. Results suggest that the policy reduced annual teacher absences by roughly 10 percent and reduced the prevalence of teachers with 15 or more annual absences by 20 percent. The effects were strongest among teachers in elementary schools and in low-achieving, predominantly African-American high schools, and among teachers with highpredicted absences. There is also evidence that the impact of the policy increased substantially after its first year.

Suggested Citation

Jacob, Brian, The Effect of Employment Protection on Worker Effort: Evidence from Public Schooling (February 2010). NBER Working Paper No. w15655. Available at SSRN: https://ssrn.com/abstract=1541344

Brian Jacob (Contact Author)

Harvard University - Harvard Kennedy School (HKS) ( email )

79 John F. Kennedy Street
Cambridge, MA 02138
United States
617-384-7968 (Phone)
617-496-5747 (Fax)

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

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