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Educator labor markets

Bradley D. Marianno, Stefani R. Relles.

This case study offers an organizational perspective on the ways in which a collective bargaining agreement shaped the administrative functioning of schools within an urban district. The data demonstrate how rational choice assumptions failed to account for the everyday site interactions between principals and teachers. Using complexity theory as an analytic tool, the authors consider the interference of external pressures on a system defined by internal interdependence. Reforms that address the complexity of workplace conditions in K-12 contexts are offered.

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Michael Gilraine, Odhrain McCarthy.

We show that fade out biases value-added estimates at the teacher-level. To do so, we use administrative data from North Carolina and show that teachers' value-added depend on the quality of the teacher that preceded them. Value-added estimators that control for fade out feature no such teacher-level bias. Under a benchmark policy that releases teachers in the bottom five percent of the value-added distribution, fifteen percent of teachers released using traditional techniques are not released once fade out is accounted for. Our results highlight the importance of incorporating dynamic features of education production into the estimation of teacher quality.  

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Andrew C. Johnston.

Human capital shapes income, inequality, and growth. In the public sphere, human-capital formation depends largely on the selection and retention of teachers. To understand how to improve selection and retention, I use a discrete-choice experiment to estimate teacher preferences for compensation structure, working conditions, and contracts. High-performing teachers have stronger preferences for schools offering performance pay, which implies it promotes positive selection. Under a variety of school objectives, schools appear to underpay in salary and performance pay while overpaying in retirement. The results suggest significant efficiency gains from restructuring compensation: teacher welfare and student achievement can be simultaneously much improved.

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Gary T. Henry, Shelby M. McNeill, Erica Harbatkin.

Test-based accountability pressures have been shown to result in transferring less effective teachers into untested early grades and more effective teachers to tested grades. In this paper, we evaluate whether a state initiative to turnaround its lowest performing schools reproduced a similar pattern of assigning teachers and unintended, negative effects on the outcomes of younger students in untested grades. Using a sharp regression discontinuity design, we find consistent evidence of increased chronic absenteeism and grade retention in the first year. Also, the findings suggest negative effects on early literacy and reading comprehension in the first year of the reform that rebounded somewhat in the second year. Schools labeled low performing reassigned low effectiveness teachers from tested grades into untested early grades, though these assignment practices were no more prevalent in reform than control schools. Our results suggest that accountability-driven school reform can yield negative consequences for younger students that may undermine the success and sustainability of school turnaround efforts.

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Seth Gershenson.

Teachers are among the most important school-provided determinants of student success. Effective teachers improve students’ test scores as well as their attendance, behavior, and earnings as adults. However, students do not enjoy equal access to effective teachers. This article reviews some of the key challenges associated with teacher policy confronted by school leaders and education policymakers, and how the tools of applied economics can help address those challenges. The first challenge is that identifying effective teachers is difficult. Economists use value-added models to estimate teacher effectiveness, which works well in certain circumstances, but should be just one piece of a multi-measure strategy for identifying effective teachers. We also discuss how different policies, incentives, school characteristics, and professional-development interventions can increase teacher effectiveness; this is important, as schools face the daunting challenge of hiring effective teachers, helping teachers to improve, and removing ineffective teachers from the classroom. Finally, we discuss the supply and mobility of teachers, including the consequences of teacher absenteeism, the distribution of initial teaching placements, and the characteristics and preferences of those who enter the profession.

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Di Xu, Florence Xiaotao Ran.

Using data with detailed instructor employment information from a state college system, this study examines disciplinary variations in the characteristics and effects of non-tenure-track faculty hired through temporary and long-term employment. We identify substantial differences in the demographic and employment characteristics between the two types of non-tenure-line faculty, where the differences are most pronounced in STEM fields at four-year colleges. Using an instrumental variables strategy to address student sorting, our analyses indicate that taking introductory courses with temporary adjuncts reduces subsequent interest, and the effects are particularly large in STEM fields at four-year colleges. Long-term non-tenure faculty are generally comparable to tenure-track faculty in student subsequent interest, but tenure-track faculty are associated with better subsequent performance in a handful of fields.

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Alex Eble, Feng Hu.

Improving college reputation can potentially impact both college choice and graduates’ early labor market performance. We study how one common practice to improve college reputation – colleges changing their names to signal higher quality – affects these two outcomes. Using a large administrative dataset from China, we show that colleges who change their names attract more qualified applicants, with larger effects among applicants who have less information about the college. These impacts persist over time, suggesting that name changes have self-reinforcing effects. To understand how name changes impact college graduates’ labor market performance, we conduct a resume audit study to estimate how listing a college’s new (vs. old) name affects employers’ recruitment decisions. We observe a small benefit for new college names in most jobs, but a penalty in jobs with low skill and experience requirements, which is consistent with employers responding rationally to how college name changes affect student aptitude.

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Todd R. Jones, Arielle Sloan.

Academic origins in economics departments, defined as the universities at which tenure-track faculty completed their doctoral studies, may have implications for how the department’s undergraduate and PhD students are trained and placed, as well as the type of research produced. In this project, we use roster data on the academic origins of the tenure-track faculty at 96 U.S. economics departments with graduate degrees. We use these data to document patterns in academic origins across several dimensions, including department ranking, gender, rank (Assistant, Associate, Full Professor), and geography. We find that 1) over half of the faculty of each of eight top departments received their PhD from one of these same universities; 2) at least half of faculty from all top-25 departments come from top-15 universities; 3) over half of Harvard and MIT faculty received their PhD at either Harvard or MIT; and 4) over half of all faculty in the study come from top-15 universities, with Harvard, MIT, and the rest of the top six disproportionately represented. The first and third findings are more pronounced for female faculty.  

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Katharine Meyer, Kelli A. Bird, Benjamin L. Castleman.
With rapid technological transformations to the labor market along with COVID-19 related economic disruptions, many working adults return to college to obtain additional training or credentials. Using a comparative individual fixed effects strategy and an administrative panel dataset of enrollment and employment in Virginia, we provide the first causal estimates of credential “stacking” among working adults. We find stacking increases employment by four percentage points and quarterly wages by $570 (seven percent). Returns are larger for individuals whose first credential is a short-term certificate and in Health and Business.

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Plamen Nikolov, Nusrat Jimi.

Numerous studies have considered the important role of cognition in estimating the returns to schooling. How cognitive abilities affect schooling may have important policy implications, especially in developing countries during periods of increasing educational attainment. Using two longitudinal labor surveys that collect direct proxy measures of cognitive skills, we study the importance of specific cognitive domains for the returns to schooling in two samples. We instrument for schooling levels and we find that each additional year of schooling leads to an increase in earnings by approximately 18-20 percent. The estimated effect sizes—based on the two-stage least squares estimates—are above the corresponding ordinary least squares estimates. Furthermore, we estimate and demonstrate the importance of specific cognitive domains in the classical Mincer equation. We find that executive functioning skills (i.e., memory and orientation) are important drivers of earnings in the rural sample, whereas higher-order cognitive skills (i.e., numeracy) are more important for determining earnings in the urban sample. Although numeracy is tested in both samples, it is only a statistically significant predictor of earnings in the urban sample. (JEL I21, F63, F66, N37)

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