“…Using different methods and data, Dolton and van der Klaauw [9], Hanushek and Rivkin [21], Hanushek, Kain, and Rivkin [22], Murnane and Olsen [37] and [38] show that individuals respond to (relative) wage incentives in their decision to start teaching or leave this occupation, and that teaching in urban areas might be a poor option compared to more remunerative alternatives available in these locations. Chevalier, Dolton, and McIntosh [5] and Hanushek, Kain, and Rivkin [22] also report that working conditions in urban schools are perceived to be worse than in provincial areas, and that teachers changing schools within urban districts might 1 While proximity of goods and individuals is a natural requirement for of economies of scale to emerge in urban environments, knowledge spillovers might not constrained by distance or within the boundaries of urban areas. However, Jaffe, Trajtenberg, and Henderson [29] provide evidence on the importance of proximity for know-how diffusion too.…”