Deregulating teacher labor markets / Simon Burgess (University of Bristol and IZA), Ellen Greaves (University of Bristol and IFS), Richard Murphy (University of Texas at Austin, NBER, IZA, CESifo and CEP) ; IZA Institute of Labor Economics
VerfasserBurgess, Simon M. ; Greaves, Ellen ; Murphy, Richard J. ; De Paola, Maria
KörperschaftForschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, August 2019
Elektronische Ressource
Umfang1 Online-Ressource (47 ungezählte Seiten)
SerieDiscussion paper ; no. 12592
 Das Dokument ist öffentlich zugänglich im Rahmen des deutschen Urheberrechts.
Deregulating teacher labor markets [0.85 mb]
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A common feature of public sector labor markets is the use of pay scales. This paper examines how the removal of pay scales impacts productivity, by exploiting a reform that compelled all schools in England to replace pay scales with school-designed performance related pay schemes. We find that schools in labor markets with better outside options for teachers saw relatively higher increases in teacher pay. Schools in these areas relatively increase their spending on teachers, have higher teacher retention and larger improvements in student tests scores. These effects are largest in schools with the high proportions of disadvantaged students. We conclude that the pay rigidities in the form of centralized pay schedules result in a misallocation of resources, by preventing such schools from retaining their teachers.