RAND researchers developed a structural stochastic dynamic programming model that links teacher retention and compensation for Chicago public school teachers (1979 – 2012).
The growing literature on teacher retention indicates that financial incentives from both current and deferred compensation (retirement benefits) are related to teacher retention in a school district and in the teaching profession more generally.
Authors conclude that the “largest changes to the retention profiles occur when current salaries are reduced and when the full retirement age is increased.”
Knapp, D., Brown, K. M., Hosek, J., Mattock, M. G. & Asch, B. J. (2016). Retirement Benefits and Teacher Retention: A Structural Modeling Approach. Santa Monica, CA: RAND Corporation, http://www.rand.org/pubs/research_reports/RR1448.html.