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Productivity and Sectoral Allocation: The Labor Market of School Principals

Author

Listed:
  • Munoz, P
  • Prem, M
Abstract
An important question is whether differences in management can explain variation in productivity and whether different compensation schemes and selection policies can impact the allocation of managerial effectiveness. To investigate this, we measure the value-added of school principals and study their labor market outcomes in Chile, where a large subsidized private sector competes with public sector schools. Using large administrative data sets on student performance and school personnel, we document substantial variation across principals in their ability to improve students’ learning. We show that effective principals increase the retention of young and high value-added teachers, and that principal effectiveness is recognized by the school community. A theoretical model of job offers and acceptances guides our empirical inquiry into the principals’ labor market. Leveraging observational and quasi-experimental variation, we show that: (1) principals’ effectiveness is more strongly associated with wages in private schools, and (2) despite relatively rigid wages, public schools can attract better principals by improving their personnel selection process.

Suggested Citation

  • Munoz, P & Prem, M, 2019. "Productivity and Sectoral Allocation: The Labor Market of School Principals," Documentos de Trabajo 17596, Universidad del Rosario.
    • Handle: RePEc:col:000092:017596
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    References listed on IDEAS

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    Cited by:

    1. Bruna Borges & Gabriel Leite & Ricardo Madeira & Luis Meloni, 2024. "Evaluating the impact of a principals’ professional development program on school management practices: Evidence from Brazil," Working Papers, Department of Economics 2024_03, University of São Paulo (FEA-USP).

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    More about this item

    Keywords

    School principal; Productivity; Sectoral allocation;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J8 - Labor and Demographic Economics - - Labor Standards
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics
    • I2 - Health, Education, and Welfare - - Education

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