Wage elasticity of the teacher supply in Switzerland

In order to learn more about the teacher supply in Switzerland, this paper analyses eleven surveys of graduates of all Swiss universities for the period of 1981-2001. We estimate wages for teachers and non-teachers with the help of selection models. The predicted individual wage differentials between teaching and all other jobs indicate a positive self-selection of teachers into teaching. Furthermore the reaction of teachers supply on the wage differential shows a wage elasticity of 0.41. As in other studies, the wage differential is counter cyclical, due to the static wage setting of the public. As a consequence, the public sector itself is creating at least a part of the cyclical pattern of teacher shortages and oversupplies.