The Labor Market for Teachers under Different Pay Schemes | Zendy

Barbara Biasi | Zendy

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The Labor Market for Teachers under Different Pay Schemes

Author(s) -

Barbara Biasi

Publication year - 2021

Publication title -

american economic journal economic policy

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 7.868

H-Index - 62

eISSN - 1945-7731

pISSN - 1945-774X

DOI - 10.1257/pol.20200295

Subject(s) - seniority , compensation (psychology) , collective bargaining , quality (philosophy) , autonomy , teacher quality , labour economics , expiration date , economics , demographic economics , business , political science , psychology , operations management , social psychology , physics , law , metric (unit) , chemistry , food science , quantum mechanics

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. (JEL J31, J45, J52, H75, I21)

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