NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Lucrecia Santibanez

School of Educational Studies Claremont Graduate U
Harper Hall 205 150 East Tenth St.,
Claremont California 91711

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Institutional Affiliation: Claremont Graduate University

NBER Working Papers and Publications

November 2017Premium or Penalty? Labor Market Returns to Novice Public Sector Teachers
with Juan Saavedra, Dario Maldonado, Luis Omar Herrera Prada: w24012
It is unclear whether public sector teachers are under or overpaid relative to other occupations due to lack of knowledge about teachers’ outside labor market options and other unobserved attributes related to compensation. We estimate causal labor market returns to novice public teachers in Colombia. Our approach takes advantage of a national, standardized, teacher-screening exam, scores on which determine eligibility for public teaching jobs. We use four nationwide administrative data sources in a regression discontinuity approach to show that applicants who marginally pass the teacher screening test have greater annual earnings during the first three years of tenure than applicants below the passing cutoff. The total earnings effect is a combination of higher daily wages and greater lab...
 
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