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α: calibrated so average coauthorship-adjusted count equals average raw count
This paper presents new evidence on the labor market effects of wage decentralization, exploiting a Swedish reform that replaced the fixed national pay scale for teachers with individual wage bargaining. The paper provides three sets of results. First, I show that the reform significantly changed the wage structure of teachers. Second, I demonstrate that these wage changes did not impact teacher retention, recruitment, or composition, and did not affect student outcomes. Finally, I provide suggestive evidence of a wage spillover effect to substitute occupations. I propose that the suggestive spillover effect helps explain the null results on teacher and student outcomes.