Prior research substantially overstates the cost of retention under test-based promotion policies to both taxpayers and students who delay labor market entry because it omits two important factors. First, there is a delay between the intervention and the taxpayer's expenditure. Second, on average, the treatment leads to less than a full year of…

State-specific licensing policies and pension plans create mobility costs for educators who cross state lines. We empirically test whether these costs affect production in schools--a hypothesis that follows directly from economic theory on labor frictions--using geo-coded data from the lower-48 states. We find that achievement is lower in…

Arguably the most important educational resource is teachers. Teachers and teaching quality are a central feature of the No Child Left Behind Act of 2001 (NCLB) which requires a "highly qualified teacher" in every core academic classroom. Many states and large districts also have policies in place to attract qualified teachers to…