Abstract
Teacher attrition is a chronic challenge facing many education systems, and has been shown to negatively impact education quality and equity. Common explanations rooted in occupational choice theory identify pecuniary and non-pecuniary rewards as critical factors in motivating and retaining teachers. Using China Household Income Project (CHIP) urban dataset, which contains detailed information on teacher career decisions, this study examines these theoretical stipulations by simultaneously modeling teacher career decisions, wage compensation, and on-the-job well-being. Probit panel regression results demonstrate that a 10% increase in teacher wage and well-being gaps, relative to comparable professionals, predicts a 7.9% and 32% lower probability of retention respectively, with effects mostly operating through teacher well-being.
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