Lessons Learned From the Great Recession

Abstract

One consequence of the Great Recession is that teacher layoffs occurred at a scale previously unseen. In this article, we assess the effects of receiving a layoff notice on teacher mobility using data from Los Angeles and Washington State. Our analyses are based on 6-year panels of data in each site, including 4 years of layoffs. We find that the layoff process leads far more teachers to leave their schools for other district schools than is necessary to reach budget savings targets. In other words, the layoff process induces teacher churn, impacting even teachers who are not actually laid off. Placebo tests confirm that this “structural churn” results from the layoff process rather than from differential mobility of targeted teachers.