Abstract
This paper examines the relation between teacher pay and teacher quality through the career dynamics of teachers and non-teachers. I find that public school teachers earn considerably less than their comparable college graduates in the non-teaching sector. By tracking wage differentials before and after career changes, I find evidence of positive selection, in which high-paid teachers are more likely to move to non-teaching occupations, and of negative selection, in which low-paid non-teachers tend to move to the teaching sector. These selection patterns, which ultimately contribute to a decrease in teacher quality, are more significant in union-unfriendly states.
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