System governing boards fulfill roles as both regulators and protectors for their multiple constituent campuses. While centralized control provides many benefits to institutional members, such advantages are also be accompanied by limitations upon campuses to pursue expanded missions, fully compete, and spend according to individual rather than…

Theories of market-based school reform suggest that teacher labor markets may be inefficient, and perhaps inequitable, because union contracts, tenure protections, and government regulation limit school autonomy over hiring, evaluation, compensation, and working conditions. In a less restrictive setting, schools could incentivize performance by…

This paper establishes five new facts about instructional costs in higher education using department-level data from a broad range of institutions. Costs vary widely across fields, ranging from electrical engineering (90% higher than English) to math (25% lower). This pattern is largely explained by differences in class size and faculty pay. Some…

In recent years, states have sought to increase accountability for public school teachers by implementing a package of reforms centered on high-stakes evaluation systems. We examine the effect of these reforms on the supply and quality of new teachers. Leveraging variation across states and time, we find that accountability reforms reduced the…

In this paper we examine the research literature on teacher performance pay. Evidence clearly suggests an upsurge of interest in many states and school districts, however, expanded use of merit pay has been controversial. We briefly review the history of teacher pay policy in the U.S. and earlier cycles of interest in merit or performance-based…