Working Paper

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 and have a larger influence when experienced during high school. 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 that local labor market fluctuations shape career decisions well before individuals participate in the labor market, and that increasing the relative economic standing of teaching as a career has the potential to improve the future supply of teachers.

JEL Classification: E32; H75; I20; J24; J45;

https://doi.org/10.24149/wp2522

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Bibliographic Information

Provider: Federal Reserve Bank of Dallas

Part of Series: Working Papers

Publication Date: 2025-06-03

Number: 2522