Early Retirement Incentives and Student Achievement
Early retirement incentives (ERIs) are increasingly prevalent in education as districts seek to close budget gaps by replacing expensive experienced teachers with lower-cost newer teachers. Combined with the aging of the teacher workforce, these ERIs are likely to change the composition of teachers dramatically in the coming years. We use exogenous variation from an ERI program in Illinois in the mid-1990s to provide the first evidence in the literature of the effects of large-scale teacher retirements on student achievement. We find the program did not reduce test scores; likely, it increased them, with positive effects most pronounced in lower-SES schools.
We would like to thank Steve Rivkin, Jonah Rockoff and seminar participants at Cornell University, CESifo, North Carolina State University, the NBER Economics of Education Working Group and the American Economic Association Annual Meetings for helpful comments and suggestions. Funding for Fitzpatrick from the National Institute on Aging, through Grant Number T32-AG000186 to the National Bureau of Economic Research, is gratefully acknowledged. All errors and omissions are our own. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
Maria D. Fitzpatrick & Michael F. Lovenheim, 2014. "Early Retirement Incentives and Student Achievement," American Economic Journal: Economic Policy, American Economic Association, vol. 6(3), pages 120-54, August. citation courtesy of