NBER Working Paper No. 24813
Issued in July 2018
NBER Program(s):Children, Economics of Education, Labor Studies
Issued in July 2018
NBER Program(s):Children, Economics of Education, Labor Studies
"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."
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