Union Reform, Performance Pay, and New Teacher Supply: Evidence from Wisconsin's Act 10

This study examines the impact of performance pay on teacher selection. I exploit a shift toward in Wisconsin induced by enactment Act 10, which gave school districts autonomy to redesign their compensation schemes. Following law, half eliminated salary schedules and started negotiating with individual teachers based performance. Comparing quantity teaching degrees institutions before after relative those similar states, find that 10 led 20 percent increase degrees. effect was entirely driven selective universities.