Essays in Labor Economics, Inclusion, and Diversity

Saharnaz Babaei Balderlou, University of South Carolina

Abstract

This dissertation presents a comprehensive analysis of various teacher staffing policies and their impact on teacher retention and turnover. It comprises three studies, each addressing a unique aspect of teacher staffing challenges in the United States and in South Carolina. Chapter 2 investigates how different salary structures (frontloading vs. backloading) affect teacher turnover in South Carolina. Using a Difference-in-Differences (DID) approach and data from FY2014 to FY2023, the study finds that frontloading salary schedules do not significantly impact overall teacher turnover, with negligible effects on novice teachers. However, the impact varies with district characteristics: specifically, frontloading may reduce turnover in districts with smaller proportions of non-white students. This suggests that targeted salary frontloading can be an effective strategy for improving teacher retention and addressing staffing challenges. Chapter 3 evaluates the Rural Recruitment Initiative (RRI) in South Carolina, which aims to improve teacher retention in hard-to-staff districts through discretionary funding and flexible purposes. Utilizing a Difference-in-Differences model, the analysis reveals that RRI has a modest impact, reducing teacher turnover by less than 1%. The findings suggest slightly better retention in rural fringe districts but highlight the need for continued support and possibly expanding the initiative to achieve more significant results and a longer evaluation period to better assess the policy’s overall effectiveness. Chapter 4 examines the effects of state-legislated LGBT anti-discrimination policies on teacher turnover and job satisfaction. Utilizing an extended difference-invidifferences design, the results demonstrate that such policies significantly reduce turnover and increase job satisfaction. However, the effect on new hires is limited. The analysis reveals varying effects across different teacher demographic subgroups, experience levels, school sectors, and types of policies, underscoring the importance of targeted interventions to foster inclusive environments. These findings have implications for policymakers, educational institutions, and advocates of LGBT rights. Overall, this dissertation provides critical empirical insights into how financial and cultural staffing policies affect teacher retention. The findings offer valuable recommendations for policymakers and educational leaders to address teacher shortages and implement effective staffing policies to improve retention rates, particularly in hard-to-staff and rural schools. These studies contribute to the broader understanding of the interplay between policy interventions and educational workforce stability, highlighting the critical role of strategic policy implementation in fostering a supportive and inclusive educational environment. The results could also be generalized to employees in different sectors such as health and industry.