Tuesday, July 17, 2018

Teacher quality increased when schools started paying high-quality teachers more

See The Labor Market for Teachers Under Different Pay Schemes by Barbara Biasi.

NBER Working Paper No. 24813
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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