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Pension-Induced Rigidities in the Labor Market for School Leaders

44 Pages Posted: 14 Oct 2011  

Cory Koedel

University of Missouri - Economics

Jason A. Grissom

University of Missouri at Columbia

Shawn X. Ni

University of Missouri at Columbia - Department of Economics

Michael J. Podgursky

University of Missouri at Columbia - Department of Economics

Date Written: October 13, 2011

Abstract

Educators in public schools in the United States are typically enrolled in defined-benefit pension plans, which penalize across-plan mobility. We use administrative data from Missouri to examine how the mobility penalties affect the labor market for school leaders. We show that pension borders greatly affect leadership flows across schools – for two groups of schools separated by a pension border, our estimates indicate that removing the border will increase leadership mobility between them by 97 to 163 percent. We consider the implications of the pension-induced rigidities in the leadership labor market for schools near pension borders in Missouri. Our findings are of general interest given that thousands of public schools operate near pension boundaries nationwide.

JEL Classification: H500, I200, J300

Suggested Citation

Koedel, Cory and Grissom, Jason A. and Ni, Shawn X. and Podgursky, Michael J., Pension-Induced Rigidities in the Labor Market for School Leaders (October 13, 2011). CESifo Working Paper Series No. 3605. Available at SSRN: https://ssrn.com/abstract=1943417

Cory Koedel

University of Missouri - Economics ( email )

118 Professional Building
Columbia, MO 65211
United States

Jason A. Grissom

University of Missouri at Columbia ( email )

332 Cornell Hall
Columbia, MO Columbia 65211
United States

Shawn X. Ni

University of Missouri at Columbia - Department of Economics ( email )

118 Professional Building
Columbia, MO 65211
United States
573-882-6878 (Phone)
573-882-2697 (Fax)

HOME PAGE: http://www.missouri.edu/~econni/

Michael J. Podgursky (Contact Author)

University of Missouri at Columbia - Department of Economics ( email )

118 Professional Building
Columbia, MO 65211
United States

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