Education Level

As states attempt to staff public school classrooms with qualified teachers, primary attention has focused on educator preparation and early career retention. Far less research has examined the staffing consequences of turnover induced by teacher pension plans. This paper makes use of a unique longitudinal data file with performance measures for all public school teachers in Tennessee. Descriptive analysis finds that higher quality teachers are less likely to retire for a given age and experience. To better understand the effects of pension plan incentives on workforce quality, we estimate a structural retirement model that explicitly allows for different work-retirement preferences for high and low quality teachers. We find that high quality teachers have a lower disutility for teaching as compared to retirement. Given that it costs less to keep high as compared to low quality teachers on the job, we use the structural estimates to simulate the effect of retention bonuses targeted to the former. One year retention bonuses produce an additional year of high quality teaching at a cost of roughly $40,000.

Citation: Shawn Ni, Michael Podgursky, Xiqian Wang (2018). Teacher Pension Plan Incentives, Retirement Decisions, and Workforce Quality. CALDER Working Paper No. Working Paper 120 718.

We document patterns and trends in school segregation in North Carolina between 1998 and 2016, a period of rapid immigration in this racially diverse state. As in other states of the South, the period of court orders enforcing racial balance has given way not only to tacit acceptance of residentially based school segregation but also to policies that offer parents alternatives to traditional public schools. Most prominent among these alternatives in North Carolina are charter schools, which have expanded rapidly with the state’s blessing. Following the prevailing practice of social scientists, we measure segregation by the degree of imbalance across schools, using counties and metropolitan areas as basic geographical units. We differentiate students according to their racial/ethnic group and also to their family income. We take into account all students including those in private schools, charter schools and traditional public schools.

For the state as a whole, we find that white/nonwhite segregation increased over the period. Most of the increase was in urban areas. We also find that low-income students became more segregated from other students. Segregation measured either way increased sharply in Charlotte-Mecklenburg, which significantly changed its student assignment policy following a federal court order. Compared to metropolitan areas in other parts of the U.S., urban areas in the state have modest levels of segregation, because most districts are county-wide and thus large and diverse. We decompose metropolitan segregation, separating the portions due to private schools, charter schools, racial disparities between school districts, and racial disparities within districts. Charter schools and within-district disparities accounted for the increase in average segregation in metropolitan areas over the period. More generally, areas where school segregation increased the most tend to be large, growing, and marked by big increases in the share of students who are Hispanic.

Citation: Charles Clotfelter, Steven Hemelt, Helen Ladd, Mavzuna Turaeva (2018). School Segregation in The Era of Immigration and School Choice: North Carolina, 1998-2016. CALDER Working Paper No. Working Paper 150 618.

This paper examines what parents value as they make choices among available charter schools, with primary attention to the racial mix of a school’s students.  We estimate conditional logit models of the charter school choices made by all parents in North Carolina who switched their child from a traditional public school to a charter school in 2014/15. Our findings that parents care about the school’s racial mix of students and that such preferences differ by the race and income of the choosers highlight the pressures that lead charter schools to be racially imbalanced.  Our models also include other factors that parents may value such as the distance to the charter, the school’s academic performance, the services provided by the charter, such as subsidized lunch and transportation, and the school’s mission and approach.   

Citation: Helen Ladd, Charles Clotfelter, Mavzuna Turaeva (2018). Choosing Charter Schools in North Carolina: What Do Parents Value?. CALDER Working Paper No. Working Paper 130 618.

Few studies examine employee responses to layoff-induced unemployment risk; none that we know of quantify the impact of job insecurity on individual employee productivity. Using data from the Los Angeles Unified School District and Washington State during the Great Recession, we provide the first evidence about the impact of the layoff process on teacher productivity. In both sites we find that teachers impacted by the layoff process are less productive than those who do not face layoff-induced job threat. LAUSD teachers who are laid off and then rehired to return to the district are less productive in the two years following the layoff. Washington teachers who are given a reduction-in-force (RIF) notice and are then not laid off have reduced effectiveness in the year of the RIF. We argue that these results are likely driven by impacts of the layoff process on teachers’ job commitment and present evidence to rule out alternate explanations.

WP 140 was revised in March 2018. It was originally released in November 2015. 

Citation: Katharine O. Strunk, Dan Goldhaber, David S. Knight, Nate Brown (2018). Are There Hidden Costs Associated With Conducting Layoffs? The Impact of RIFs and Layoffs on Teacher Effectiveness. CALDER Working Paper No. Working Paper 140.

This paper examines the influence of teacher assistants and other personnel on student outcomes in elementary schools during a period of recession-induced cutbacks in teachers and teacher assistants. Using panel data from North Carolina, we exploit the state’s unique system of financing its local public schools to identify the causal effects of teacher assistants and other staff on student test scores in math and reading and other outcomes. We find strong and consistent evidence of positive contributions of teacher assistants, an understudied staffing category, with larger effects on outcomes for minority students than for white students. 

Citation: Steven Hemelt, Helen Ladd (2017). Teaching Assistants and Nonteaching Staff: Do They Improve Student Outcomes? (Update). CALDER Working Paper No. Working Paper 169.

State-specific licensing policies and pension plans create mobility costs for educators who cross state lines. We empirically test whether these costs affect production in schools – a hypothesis that follows directly from economic theory on labor frictions – using geocoded data on school locations and state boundaries. We find that achievement is lower in mathematics, and to a lesser extent in reading, at schools that are more exposed to state boundaries. A detailed investigation of the selection of schools into boundary regions yields no indication of systematic differences between boundary and non-boundary schools along other measured dimensions. Moreover, we show that cross-district labor frictions do not explain state boundary effects. Our findings are consistent with the hypothesis that mobility frictions in educator labor markets near state boundaries lower student achievement.

Citation: Dongwoo Kim, Cory Koedel, Shawn Ni, Michael Podgursky (2017). Labor Market Frictions and Production Efficiency in Public Schools. CALDER Working Paper No. Working Paper 166.

Public school teachers retire much earlier than comparable professionals. Pension rule changes affecting new teachers can be used to close this gap in the long run, but any effects will not be observed for decades and the implications for workforce quality are unclear. This paper considers targeted incentive policies designed to retain experienced high-need teachers, of retirement age, as instruments to extend current teachers’ careers. We use structural estimates from a dynamic retirement model to simulate the workforce effects of targeted late-career salary bonuses and deferred retirement (DROP) plans using administrative data from Missouri. The simulations suggest that such programs can be cost-effective, partly because long-term pension savings offset a portion of upfront program costs. More generally, we demonstrate the utility of using structural retirement models to analyze fiscal and workforce effects of changes to public sector pension plans, since the effects of pension reforms cumulate over many years.

Citation: Dongwoo Kim, Cory Koedel, Shawn Ni, Michael Podgursky, Weiwei Wu (2017). Pensions and Late Career Teacher Retention (Update). CALDER Working Paper No. Working Paper 164.

An increasingly prevalent type of program designed to address college attainment gaps are state-based financial aid programs that offer low-income middle school students a promise of funding for college in exchange for making a pledge to do well in high school, be a good citizen and not be convicted of a felony, and apply for financial aid to college.  Using a difference-in-differences specification, we estimate the effects of Washington State’s College Bound Scholarship Program on high school grades,  whether students graduate from high school, and incarceration in state prison during high school or during early adulthood.  We find evidence that eligible students’ high school grade point averages fell by 0.01 (from a pre-policy base of 2.38) and that the likelihood of being incarcerated fell by 0.1 percentage points (from a pre-policy base of 0.3 percentage points). These findings are robust to falsification exercises. Eligible students also experienced an increase in their rate of on-time high school graduation, but falsification tests show that this result is not due to the program, but rather due to broader secular improvement in graduation rates for disadvantaged youth.

Citation: Dan Goldhaber, Mark C. Long, Trevor Gratz, Jordan Rooklyn (2017). The Effects of Washington’s College Bound Scholarship Program on High School Grades, High School Completion, and Incarceration. CALDER Working Paper No. Working Paper 178.

We use remarkable population-level administrative education and birth records from Florida to study the role of Long-Term Orientation on the educational attainment of immigrant students living in the US. Controlling for the quality of schools and individual characteristics, students from countries with long term oriented attitudes perform better than students from cultures that do not emphasize the importance of delayed gratification. These students perform better in third grade reading and math tests, have larger test score gains over time, have fewer absences and disciplinary incidents, are less likely to repeat grades, and are more likely to graduate from high school in four years. Also, they are more likely to enroll in advanced high school courses, especially in scientific subjects. Parents from long term oriented cultures are more likely to secure better educational opportunities for their children. A larger fraction of immigrants speaking the same language in the school amplifies the effect of Long-Term Orientation on educational performance. We validate these results using a sample of immigrant students living in 37 different countries.

Citation: David Figlio, Paola Giuliano, Umut Özek, Paola Sapienza (2017). Long-Term Orientation and Educational Performance. CALDER Working Paper No. Working Paper 174.