We examine the labor supply decisions of substitute teachers–a large, on-demand market
with broad shortages and inequitable supply. In 2018, Chicago Public Schools implemented
a targeted bonus program designed to reduce unfilled teacher absences in largely
segregated Black schools with historically low substitute coverage rates. Using a regression
discontinuity design, we find that incentive pay substantially improved coverage equity and
raised student achievement. Changes in labor supply were concentrated among Black and …

We examine the labor supply decisions of substitute teachers--a large, on-demand market
with broad shortages and inequitable supply. In 2018, Chicago Public Schools implemented
a targeted bonus program designed to reduce unfilled teacher absences in largely
segregated Black schools with historically low substitute coverage rates. Using a regression
discontinuity design, we find that incentive pay substantially improved coverage equity and
raised student achievement. Changes in labor supply were concentrated among Black and …