Teacher Pension Systems, the Composition of the Teaching Workforce, and Teacher Quality

Koedel, Cory; Podgursky, Michael; Shi, Shishan

doi:10.1002/pam.21699

Cited by 36 publications

(35 citation statements)

References 34 publications

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“…Differences between both public employee retiree health insurance plans and the other types of insurance studied and public and private employees suggest the effects of retiree health insurance may be different across the public and private sectors. For example, research has shown that public sector employees are particularly responsive to the nonlinearities in their pension benefits (Costrell and Podursky 2009; Brown 2010; Koedel et al 2013; Grissom et al 2013a, 2013b) and are more knowledgeable about their retirement benefits (DeArmond and Goldhaber 2010) than their counterparts in the private sector.…”

Section: Introductionmentioning

confidence: 99%

Retiree health insurance for public school employees: Does it affect retirement?

Fitzpatrick

2014

Journal of Health Economics

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Despite the widespread provision of retiree health insurance for public sector workers, little attention has been paid to its effects on employee retirement. This is in contrast to the large literature on health-insurance-induced “job-lock” in the private sector. I use the introduction of retiree health insurance for public school employees in combination with administrative data on their retirement to identify the effects of retiree health insurance. As expected, the availability of retiree health insurance for older workers allows employees to retire earlier. These behavioral changes have budgetary implications, likely making the programs self-financing rather than costly to taxpayers.

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Section: Introductionmentioning

confidence: 99%

Retiree health insurance for public school employees: Does it affect retirement?

Fitzpatrick

2014

Journal of Health Economics

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“…Three papers build on the peak value approach in Coile and Gruber (2007) by measuring differential responses among teachers: Costrell and McGee (2010), Friedberg andTurner (2011), andKoedel, Podgursky, andShi (2013). Costrell and McGee (2010) estimate peak value models for Arkansas teachers and find that teachers are indeed responsive to peak value.…”

Section: My Contributions and Review Of The Literaturementioning

confidence: 99%

“…I also look at the differences in retirement behavior by teacher value-added, and I find that high-value-added teachers are the least likely to leave during the pension pull but behave similarly to low-valueadded teachers during the pension push. Koedel, Podgursky, and Shi (2013) examine the relationship between value-added and retirement, but through a different lens. They do not leverage variation in pension wealth or peak value, but instead use peak value to determine teacher type.…”

Section: My Contributions and Review Of The Literaturementioning

confidence: 99%

Teacher Pension Workshop: Connecting Evidence-Based Research to Pension Reform: Are Teacher Pensions "Hazardous" for Schools?

Mahler¹

2018

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R® is a registered trademark Limited Print and Electronic Distribution RightsThis document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited. Permission is given to duplicate this document for personal use only, as long as it is unaltered and complete. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial use. For information on reprint and linking permissions, please visit www.rand.org/pubs/permissions.html.The RAND Corporation is a research organization that develops solutions to public policy challenges to help make communities throughout the world safer and more secure, healthier and more prosperous. RAND is nonprofit, nonpartisan, and committed to the public interest.RAND's publications do not necessarily reflect the opinions of its research clients and sponsors. Abstract I use a detailed panel of data and a unique modeling specification to explore how public schoolteachers respond to the incentives embedded in North Carolina's retirement system. Like most public-sector retirement plans, North Carolina's teacher pension implicitly encourages teachers to continue working until they are eligible for their pension benefits, and then leave soon afterward. I find that teachers with higher levels of quality, as measured by a teacher's value-added to her students' achievement test scores, are more responsive to the "pull" of teacher pensions. Younger teachers, those with higher salaries, and nonwhite teachers are also more likely to stay during the pension "pull." All teachers show a strong response to the pension "push," with about a quarter of teachers leaving every year once they become eligible for their pension. I depart from other models of teacher retirement by using a Cox proportional hazard model. Given that salaries are generally fixed by the state, I find that the number of years a teacher must work before she is eligible for her full pension benefit is the major driver of variation in pension wealth. This specification has the benefit of a flexible baseline hazard that can easily capture the sharp incentives driving a teacher's retirement decision that are dependent on her proximity to retirement eligibility, and can flexibly account for differences driven by local labor market conditions. These analyses highlight important unintended effects that inform education policies going forward to ensure the retention of high-quality teachers in all types of schools. Support RAND

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“…Differences between both public employee retiree health insurance plans and the other types of insurance studied and public and private employees suggest the effects of retiree health insurance may be different across the public and private sectors. For example, research has shown that public sector employees are particularly responsive to the nonlinearities in their pension benefits (Costrell and Podursky 2009;Brown 2010;Koedel et al 2013;Grissom et al 2013b) and are more knowledgeable about their retirement benefits (DeArmond and Goldhaber 2010) than their counterparts in the private sector.…”

Section: Introductionmentioning

confidence: 99%

Retiree Health Insurance for Public School Employees: Does it Affect Retirement?

Fitzpatrick¹

2013

View full text Add to dashboard Cite

Despite the widespread provision of retiree health insurance for public sector workers, little attention has been paid to its effects on employee retirement. This is in contrast to the large literature on healthinsurance-induced "job-lock" in the private sector. I use the introduction of retiree health insurance for public school employees in combination with administrative data on their retirement to identify the effects of retiree health insurance. As expected, the availability of retiree health insurance for older workers allows employees to retire earlier. These behavioral changes have budgetary implications, likely making the programs self-financing rather than costly to taxpayers.

show abstract

Teacher Pension Systems, the Composition of the Teaching Workforce, and Teacher Quality

Cited by 36 publications

References 34 publications

Retiree health insurance for public school employees: Does it affect retirement?

Retiree health insurance for public school employees: Does it affect retirement?

Teacher Pension Workshop: Connecting Evidence-Based Research to Pension Reform: Are Teacher Pensions "Hazardous" for Schools?

Retiree Health Insurance for Public School Employees: Does it Affect Retirement?

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