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Joint Labor Economics & Econometrics Workshop: Chao Fu

Monday, April 12, 2021 at 11:15am to 12:45pm

Virtual Event

Chao Fu, University of Wisconsin - Madison

Equilibrium in the Market for Public School Teachers: District Wage Strategies and Teacher Comparative Advantage∗
Barbara Biasi, Chao Fu and John Stromme†

Abstract: We study the equity-efficiency implication of giving school districts control over teacher pay using an equilibrium model of the market for public-school teachers. Teachers differ in their comparative advantages in teaching low- or high-achieving students. School districts, which serve different student bodies, use both wage and hiring strategies to compete for their preferred teachers. We estimate the model using data from Wisconsin, where districts gained control over teacher pay in 2011. We find that, all else equal, giving districts control over teacher pay would lead to more efficient teacher-district sorting but larger educational inequality. Teacher bonus programs that incentivize comparative advantage-based sorting, combined with bonus rates favoring districts with more low-achieving students, could improve both efficiency and equity

Dial-In Information

If you are interested in participating in this seminar, please email Heather LaCombe at for Zoom information.

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Event Type

Seminar, Class/ Workshop




economics, EconSeminar, EconLabor, EconMetrics

Contact E-Mail

Contact Name

Heather LaCombe


Chao Fu

Speaker Affiliation

University of Wisconsin - Madison