Local Labor Markets and Selection into the Teaching Profession

Abstract

Using administrative data from Texas, I track individuals from high school through college to the workforce to determine the effects of local labor markets on occupational choice. I find local labor market conditions are countercyclical with selection into teaching. Individuals sorting into teaching because of poor local labor market conditions are of higher ability (standardized tests) and have higher productivity (value-added). The findings suggest local labor market fluctuations shape career decisions well before individuals participate in the labor market, and increasing the relative economic standing of teaching as a career has the potential to improve the future supply of teachers.