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  4. May 2021
  5. Union Reform, Performance Pay, and New Teacher Supply: Evidence from Wisconsin's Act 10

AEA Papers and Proceedings

ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)

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Union Reform, Performance Pay, and New Teacher Supply: Evidence from Wisconsin's Act 10

  • E. Jason Baron
AEA Papers and Proceedings
vol. 111, May 2021
(pp. 445–49)
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Abstract

This study examines the impact of performance pay on teacher selection. I exploit a shift toward performance pay in Wisconsin induced by the enactment of Act 10, which gave school districts autonomy to redesign their compensation schemes. Following the law, half of Wisconsin school districts eliminated salary schedules and started negotiating pay with individual teachers based on performance. Comparing the quantity of teaching degrees in Wisconsin institutions before and after Act 10, and relative to those in similar states, I find that Act 10 led to a 20 percent increase in teaching degrees. This effect was entirely driven by selective universities.

Citation

Baron, E Jason. 2021. "Union Reform, Performance Pay, and New Teacher Supply: Evidence from Wisconsin's Act 10." AEA Papers and Proceedings, 111: 445–49. DOI: 10.1257/pandp.20211039

Additional Materials

JEL Classification

  • J51 Trade Unions: Objectives, Structure, and Effects
  • J33 Compensation Packages; Payment Methods
  • J45 Public Sector Labor Markets
  • H75 State and Local Government: Health; Education; Welfare; Public Pensions
  • I28 Education: Government Policy
  • M52 Personnel Economics: Compensation and Compensation Methods and Their Effects
  • J22 Time Allocation and Labor Supply