Abstract

This study presents the literature's first estimates of the effect of teacher pay on the distribution of experience among teachers hired by public school districts. Overall, a 1% increase in base salary for teachers of a particular experience level increases the proportion of the targeted teachers hired by 0.04-0.08 percentage points. Pay increases have the largest effect on hire rates among teachers with 2-3 years of experience and the effect diminishes with experience. I show that higher teacher salaries provide a dual benefit of retaining and attracting a more effective distribution of teachers. Districts may also improve student achievement growth at no cost by reshaping their salary schedules so that they are increasing and concave in teacher experience.

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