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Journal of Labor Economics Vol. 38 No. 2 2020

Public and Private Employer Learning: Evidence from the Adoption of Teacher Value Added

Michael Bates

University of California, Riverside

open access

Abstract

Informational asymmetries between employers may inhibit optimal worker mobility. However, researchers rarely observe shocks to employers’ information. I exploit two school districts’ adoptions of value-added (VA) measures of teacher effectiveness—informational shocks to some, but not all, employers—to provide direct tests of asymmetric employer learning. I develop a learning model and test its predictions for teacher mobility. I find that adopting VA increases within-district mobility of high-VA teachers, while low-VA teachers move out of district to uninformed principals. These patterns are consistent with asymmetric employer learning. This sorting from widespread VA adoption exacerbates inequality in access to effective teaching.

DOI
10.1086/705881
Volume
38
Issue
2
Pages
375-420
Language
en
Sources
openalex crossref

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