Teacher Pension Plan Incentives, Retirement Decisions, and Workforce Quality

A-Tier
Journal: Journal of Human Resources
Year: 2022
Volume: 57
Issue: 1

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We analyze late-career teacher turnover induced by pension incentives. Using longitudinal data on Tennessee teachers, we find high-quality teachers less likely to retire conditional on age and experience. We estimate a structural model for retirement that allows high- and lower-quality teachers to have different work–retirement preferences and use it to simulate the effect of alternative pension plan designs. Enhancements to traditional plans accelerate teacher retirement and reduce average teacher quality, whereas defined contribution (DC) plans have the opposite effect. Under the current plan, targeted retention bonuses would delay retirement of high-quality teachers at relatively modest cost.

Technical Details

RePEc Handle
repec:uwp:jhriss:v:57:y:2022:i:1:p:272-303
Journal Field
Labor
Author Count
3
Added to Database
2026-01-29