Teacher Compensation and Structural Inequality: Evidence from Centralized Teacher School Choice in PeruMatteo Bobba, Tim Ederer, Marco Nieddu (), Gianmarco Leon-Ciliotta and Christopher Neilson No 21-1232, TSE Working Papers from Toulouse School of Economics (TSE) Abstract: We exploit data on the universe of public-school teachers and students in Peru´ to establish that wage rigidity makes teachers choose schools based on non-pecuniary factors, magnifying the existing urban-rural gap in student achievement. Leveraging a reform in the teacher compensation structure, we provide causal evidence that increasing salaries in less desirable locations is effective at improving student learning by attracting higher-quality teachers. We then build and estimate a model of teacher sorting across schools and student achievement production, whereby teachers are heterogeneous in their preferences over non-wage attributes and their comparative advantages in teaching different student types. Counterfactual compensation policies that leverage information about teachers’ preferences and value-added can result in a substantially more efficient and equitable allocation by inducing teachers to sort based on their comparative advantage. Keywords: Inequality; Teacher School Choice; Teacher Wages; Matching with Contracts (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:tse:wpaper:125785 Access Statistics for this paper More papers in TSE Working Papers from Toulouse School of Economics (TSE) Contact information at EDIRC. |
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