Teacher Mobility Responses to Wage Changes: Evidence from a Quasi-Natural Experiment | Zendy

Torberg Falch | Zendy

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

Author(s) -

Torberg Falch

Publication year - 2011

Publication title -

american economic review

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 16.936

H-Index - 297

eISSN - 1944-7981

pISSN - 0002-8282

DOI - 10.1257/aer.101.3.460

Subject(s) - norwegian , wage , economics , natural experiment , efficiency wage , turnover , labour economics , exploit , demographic economics , mathematics , statistics , philosophy , linguistics , management , computer security , computer science

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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