For any labor market to function properly, clear information is needed to guide decision making; its absence invariably leads to less than optimal decisions and inefficiencies. While the broader labor market is riddled with imperfect information, the teacher labor market is particularly vulnerable--largely for the lack of the most basic…

The authors analyze the Arkansas teacher pension plan and empirically gauge the behavioral response to incentives embedded in that plan and to possible reforms. The pattern of pension wealth accrual creates sharp incentives to work until eligible for early or normal retirement, often in one's early fifties, and to separate shortly thereafter. We…