The Labor Market for Teachers under Different Pay Schemes
- (pp. 63-102)
(Complimentary)
Abstract
Compensation of most US public school teachers is rigid and solely based on seniority. This paper studies the effects of a reform that gave school districts in Wisconsin full autonomy to redesign teacher pay schemes. Following the reform some districts switched to flexible compensation. Using the expiration of preexisting collective bargaining agreements as a source of exogenous variation in the timing of changes in pay, I show that the introduction of flexible pay raised salaries of high-quality teachers, increased teacher quality (due to the arrival of high-quality teachers from other districts and increased effort), and improved student achievement.Citation
Biasi, Barbara. 2021. "The Labor Market for Teachers under Different Pay Schemes." American Economic Journal: Economic Policy, 13 (3): 63-102. DOI: 10.1257/pol.20200295Additional Materials
JEL Classification
- 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
- J52 Dispute Resolution: Strikes, Arbitration, and Mediation; Collective Bargaining
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