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American Economic Review Vol. 101 No. 3 2011

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

Torberg Falch

Department of Economics, Norwegian University of Science and Technology, N-7491 Trondheim, Norway.

Abstract

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 1¼.

DOI
10.1257/aer.101.3.460
Volume
101
Issue
3
Pages
460-465
Language
en
Sources
bibtex:phds-export.bib crossref openalex

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