Labour Market Expectations and Occupational Choice : Evidence from Teaching

Using new survey data on teachers intentions to leave the profession, subjective expectations about labour market outcomes and a modified discrete-choice experiment we find that i) teachers are systematically misinformed about population earnings, and misinformation is correlated with quitting intentions; ii) non-pecuniary factors are the most cost-effective method of reducing teacher attrition; and iii) quitting intentions are more affected by reductions in workplace amenities than symmetric improvements, suggesting preventing cuts is more important that rolling out more generous benefits