The Labor Market for Teachers Under Different Pay Schemes

95 Pages Posted: 2 Apr 2017 Last revised: 5 Aug 2018

Multiple version iconThere are 2 versions of this paper

Date Written: July 7, 2018

Abstract

Compensation of most US public school teachers is rigid and solely based on seniority. This paper studies a 2011 reform that gave school districts in Wisconsin full autonomy to redesign teacher pay schemes. I show that, following the reform, some districts switched to flexible compensation and started paying high-quality teachers more. Teacher quality increased in these districts relative to those with seniority pay, due to a change in workforce composition and an increase in effort. I estimate a structural model of this labor market to investigate the effects of alternative pay schemes on the composition of the teaching workforce.

Keywords: Teachers, Salaries, Pay-for-performance, Job Mobility, Unions, Teacher Selection, Teacher Retention

JEL Classification: I20, J31, J45, J51, J61, J63

Suggested Citation

Biasi, Barbara, The Labor Market for Teachers Under Different Pay Schemes (July 7, 2018). Available at SSRN: https://ssrn.com/abstract=2942134 or http://dx.doi.org/10.2139/ssrn.2942134

Barbara Biasi (Contact Author)

Yale School of Management ( email )

135 Prospect Street
P.O. Box 208200
New Haven, CT 06520-8200
United States

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