To Teach or Not to Teach? Panel Data Evidence on the Quitting Decision

30 Pages Posted: 7 Jun 2004

See all articles by Paul Frijters

Paul Frijters

Queensland University of Technology - School of Economics and Finance

Michael A. Shields

University of Melbourne - Department of Economics; IZA Institute of Labor Economics

Stephen Wheatley Price

University of Leicester - Department of Economics; IZA Institute of Labor Economics

Date Written: May 2004

Abstract

The question we address in this paper is which factors influence the quitting decision of public sector teachers in England and Wales, using a nationally representative panel data set over 1997-2003. We document the outcomes of former teachers, fit single and competing risks duration models and examine the influence of relative pay on retention. Surprisingly, we find that teachers who move to outside employment earn 22% less pay, work longer hours, in largely nonprofessional occupations and mainly stay within the public sector. We estimate that a 10% increase in teachers? relative pay would reduce annual quitting rates by less than 1%.

Keywords: teachers, panel data, wages, quitting

JEL Classification: J45, J63, I18

Suggested Citation

Frijters, Paul and Shields, Michael A. and Wheatley Price, Stephen, To Teach or Not to Teach? Panel Data Evidence on the Quitting Decision (May 2004). IZA Discussion Paper No. 1164. Available at SSRN: https://ssrn.com/abstract=555703

Paul Frijters (Contact Author)

Queensland University of Technology - School of Economics and Finance ( email )

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Michael A. Shields

University of Melbourne - Department of Economics ( email )

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+61 3 8344 6899 (Fax)

IZA Institute of Labor Economics

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Stephen Wheatley Price

University of Leicester - Department of Economics ( email )

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Leicester LE1 7RH
United Kingdom
+0116 252 5645 (Phone)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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