The effects of teacher tenure on productivity and selection

Abstract

I examine productivity and selection effects of K-12 teacher tenure by leveraging variation from New Jersey’s TEACHNJ Act, which extended the pretenure period. Using a difference-in-differences design, I evaluate the productivity effects of tenure by comparing fourth-year tenured and pretenured teachers. I find math value-added declines but English language arts value-added and ratings remain unchanged. Focusing on labor market effects, I compare teachers hired before and after TEACHNJ within the same district and experience level. TEACHNJ disproportionately increased male and Black teacher turnover, as the policy was tied to subjective evaluation criteria. TEACHNJ did not impact the quality of the teacher labor market as measured by value-added, though higher rated teachers often filled new vacancies. This matches principal–agent models where schools only use ratings to guide personnel decisions. Overall, tenure generates small declines in math value-added, while reforms tied to subjective evaluations disproportionately increase male and Black teacher turnover.