The Misallocation of Pay and Productivity in the Public Sector: Evidence from the Labor Market for Teachers
By Natalie Bau, Jishnu Das. 2017
381 citations recorded by the source corpus.
This paper uses a unique dataset of both public and private sector primary school teachers and their students to present among the first estimates in a low-income country of (a) teacher effectiveness; (b) teacher value added (TVA) and its correlates; and (c) the link between TVA and teacher wages. Teachers are highly effective in our setting: Moving a student from the 5th to the 95th percentile in the public school TVA distribution would increase mean student test scores by 0.54 standard deviations. Although the first two years of experience, as well as content knowledge, are associated with TVA, all observed teacher characteristics explain no more than 5 percent of the variation in TVA. Finally, there is no correlation between TVA and wages in the public sector (although there is in the private sector), and a policy change that shifted public hiring from permanent to temporary contracts, reducing wages by 35 percent, had no adverse impact on TVA, either immediately or after 4 years. The study confirms the importance of teachers in low income countries, extends previous experimental results on teacher contracts to a large-scale policy change, and provides striking evidence of significant misallocation between pay and productivity in the public sector.
Subfields: Education, Safety Research
View Paper: https://www.semanticscholar.org/paper/29a197034c42e159ff67f591d1b011c2e9fd8ae7
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Citations in the corpus
- (The Struggle for) Refugee Integration into the Labour Market: Evidence from Europe (2018, background): “…countries (Bratsberg et al. 2014; Ruiz and Vargas-Silva 2018; Sarvimäki 2017) hints at a large initial labour market disadvantage of refugees, albeit one that tends to shrink over time (see Bevelander 2016, Becker and Ferrara 2019, and Brell et al. 2020 for recent reviews of this literature).”