Liquidity for teachers: Evidence from Teach For America and LinkedIn

There are teacher shortages in the U.S. and around the world. In a three-year field experiment with a large teacher placement program, Teach For America (TFA), Coffman et al. (2019) finds that providing upfront liquidity to prospective teachers in financial need dramatically increases the rate at which they start teaching through TFA. In this paper, we combine TFA administrative data, survey data, and publicly available data (e.g., LinkedIn profiles) to extend those results. We follow individuals for a few years post treatment and find that providing upfront liquidity not only increases the rate that financially constrained individuals join TFA but also increases the rate that they complete the full two years of teaching. Further, providing liquidity to those who need it increases their likelihood of being teachers at all - not just through TFA - through at least two years.