- Dan Goldhaber
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Over the last two decades, twenty-two states have moved away from traditional defined benefit (DB) pension systems and toward pension plan structures like the defined contribution (DC) plans now prevalent in the private sector. Others are considering such a reform as it is seen as a means of limiting future pension funding risk. It is important to understand the implications of such reforms for end-of-career exit patterns and workforce composition. Empirical evidence on the relationship between pension plan structure and retirement timing is currently limited, primarily because, most state pension reforms are so new that few employees enrolled in those alternative plans have reached retirement age. An exception, and the subject of our analysis, is the teacher retirement system in Washington State, which introduced a hybrid DB-DC plan in 1996 and allowed employees in its traditional DB plan to transfer into the new plan. Our analysis focuses on a years-of-service threshold, the crossing of which grants employees early retirement eligibility and, in many cases, a large upward shift in retirement wealth. The financial implications of crossing this threshold are far greater under the state’s traditional DB plan than under the hybrid plan. We find that employees are responsive to crossing the years-of-service threshold, but we fail to find significant evidence that the propensity to exit the workforce varies according to plan enrollment.
We use publicly available, longitudinal data from Washington state to study the extent to which three interrelated processes—teacher attrition from the state teaching workforce, teacher mobility between teaching positions, and teacher hiring for open positions—contribute to “teacher quality gaps” (TQGs) between students of color and other students in K–12 public schools. Specifically, we develop and implement an agent-based model simulation of decisions about attrition, mobility, and hiring to assess the extent to which each process contributes to observed TQGs. We find that eliminating inequities in teacher mobility and hiring across different schools would close TQGs within 5 years, while just eliminating inequities in teacher hiring would close gaps within 10 years. On the other hand, eliminating inequities in teacher attrition without addressing mobility and hiring does little to close gaps.
This study adds to the currently limited evidence base on the efficacy of interventions targeting non-college-ready high school students by examining the impact of Kentucky’s Targeted Interventions (TI) program. We focus on interventions that students received under TI in the senior year of high school based on their 11th grade ACT test scores. Using difference-in-regression discontinuity and difference-in-difference designs with seven cohorts of 11th grade students, we find that, for an average per-student cost of about $600, TI significantly reduces the likelihood that students enroll in remedial course in both 2- and 4-year postsecondary institutions by 5–10 percentage points in math and 3–4 percentage points in English. These effects are similar among students who are eligible for free-or reduced-price lunch, Black and Hispanic students, students with remediation needs in multiple subjects, and students in lower-performing schools. Evidence also shows that TI increases the likelihood that students enroll in and pass college math before the end of the first year by four percentage points in 4-year universities. However, little evidence exists for TI affecting credit accumulation or persistence.
Indiana, Oklahoma, and Washington have programs designed to address college enrollment and completion gaps by offering a promise of state-based college financial aid to low-income middle school students in exchange for making a pledge to do well in high school, be a good citizen, not be convicted of a felony, and apply for financial aid to college. Using a triple-difference specification, we find that Washington’s College Bound Scholarship shifted enrollment from out-of-state to in-state colleges at which the scholarship could be used. While we find suggestive evidence that the program increased the likelihood of attending a postsecondary institution and attaining a bachelor’s degree within five years of high school, we discuss why the program might be more successful if it did not require students to sign a pledge.