Seminar: The effects of higher teacher pay on teacher retention. A differences-in-differences analysis

Time: 13.00-14.00 hours
Location: CPB-office, Van Stolkweg 14, The Hague

Presentation: Marc van der Steeg (CPB)

Discussant: Nienke Ruijs (UvA)

Language: English

Registration:  Please register here.

Abstract subject:
This paper investigates the effects of higher teacher pay on retention and schooling decisions of teachers. We exploit exogenous variation in teacher pay caused by the introduction of a policy to provide schools in a region with better outside options for teachers and more disadvantaged pupils with extra funds to place a higher share of teachers in a higher salary scale. We find no significant effects of placement in a higher scale on retention as a teacher. We do however find positive effects on retention in the same school and retention in the same region. Moreover, the policy positively affects teachers’ enrollment in formal schooling. Our set of estimates suggest that teacher retention and schooling decisions are particularly sensitive to better opportunities of scale promotions in bigger cities with better outside options for teachers and with relatively high shares of pupils from disadvantaged backgrounds. Particularly younger teachers (i.e. below 35) seem to be sensitive to promotion opportunities in their retention decisions.

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