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American Economic Review: Vol. 101 No. 3 (May 2011)

AER Volume. 101, Issue 3 | Previous ArticleNext Article

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Teacher Mobility Responses to Wage Changes: Evidence from a Quasi-natural Experiment

Article Citation

Falch, Torberg. 2011. "Teacher Mobility Responses to Wage Changes: Evidence from a Quasi-natural Experiment." American Economic Review, 101(3): 460-65.

DOI: 10.1257/aer.101.3.460

Abstract

This paper utilizes a Norwegian experiment with exogenous wage changes to study teachers' turnover decisions. Within a completely centralized wage setting system, teachers in schools with a high degree of teacher vacancies in the past got a wage premium of about 10 percent during the period 1993-94 to 2002-03. The empirical strategy exploits that several schools switched status during the empirical period. In a fixed effects framework, I find that the wage premium reduces the probability of voluntary quits by six percentage points, which implies a short run labor supply elasticity of about 1 1/4 .

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Authors

Falch, Torberg (Norwegian U Science and Technology)

JEL Classifications

H75: State and Local Government: Health; Education; Welfare; Public Pensions
I21: Analysis of Education
J31: Wage Level and Structure; Wage Differentials
J45: Public Sector Labor Markets
J61: Geographic Labor Mobility; Immigrant Workers
J63: Labor Turnover; Vacancies; Layoffs