Working Paper: NBER ID: w30714
Authors: Matthew A. Kraft; Megan Lane Conklin; Grace T. Falken
Abstract: We examine the labor supply decisions of substitute teachers – a large, on-demand market with broad shortages and inequitable supply. In 2018, Chicago Public Schools implemented a targeted bonus program designed to reduce unfilled teacher absences in largely segregated Black schools with historically low substitute coverage rates. Using a regression discontinuity design, we find that incentive pay substantially improved coverage equity and raised student achievement. Changes in labor supply were concentrated among Black and Hispanic substitutes from nearby neighborhoods with experience in incentive schools. Wage elasticity estimates suggest incentives would need to be 50% of daily wages to close fill-rate gaps.
Keywords: No keywords provided
JEL Codes: I21; I24; J23; J33
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Incentive pay program (J33) | Share of substitute requests filled in incentive schools (I21) |
| Share of substitute requests filled in incentive schools (I21) | Teacher absences covered per school (J22) |
| Teacher absences covered per school (J22) | Total student-hours of classroom coverage (A33) |
| Incentive pay program (J33) | Wage elasticity estimates (J31) |
| Improved substitute coverage (Y60) | Student achievement in English Language Arts (I24) |
| Incentive pay program (J33) | Number of substitutes willing to work in schools (J45) |
| Incentive pay program (J33) | Increased fill rates (E43) |