The Effects of School Closure on the Teacher Labor Market: Evidence From Portfolio Management in New Orleans

This quasi-experimental study examines the impact of school closures on teachers’ future employment and salaries in a portfolio management district. Using an event study, the authors focus on teachers employed in New Orleans schools between 2007 and 2015, a period of numerous school closures and takeovers in the city. Analysis of employment data indicates that closures led to a significant increase in teacher exits from the public education system. The research also finds that many teachers who remained in the education system changed districts, were hired into non-teaching roles, or received reduced salaries. Closures did not disproportionately affect lower-performing teachers. These outcomes suggest the need for targeted strategies to support teacher retention and stability in the wake of school closures. This study was conducted by the Education Research Alliance for New Orleans.