Does holding schools accountable for student performance cause good teachers to leave lowperforming schools? Using data from New York City, which assigns accountability grades to schools based on student achievement, I perform a regression discontinuity analysis and find evidence of the opposite effect. At the bottom end of the school grade distribution, I find that a lower accountability grade decreases teacher turnover and increases joining teachers' quality. A likely channel is that accountability pressures induce increases in principal effort at lower-graded schools, especially among high-quality principals, and teachers value these changes. In contrast, at the top end of the school grade distribution, where accountability pressures are lower, low accountability grades may negatively impact joining teachers' quality.1 This type of stigma is distinct from the social stigma that the existing accountability literature has often deemed responsible for spurring test score improvements in response to low accountability grades (Figlio and Rouse, 2006; West and Peterson, 2006). In this paper's categorization, social stigma would in fact impact job desirability. The direct effect would be negative, but the indirect (and thus net) effect could be positive if it spurs test score improvements that teachers value; this is thus a potential channel for job desirability to explain this paper's findings.3 the RD impacts of low grades by baseline measures of principal quality. I find that the decreases in turnover at lower-graded schools are driven primarily by schools with higher-quality principals (as measured by baseline principal leadership ratings). This suggests that principal capacity to transform accountability pressures into positive changes for the school may be a key ingredient that enables low accountability grades to have positive labor market effects.Thus, the results suggest that the accountability system benefited low-performing schools at the bottom end of the grade distribution through two labor market channels: decreased turnover and increased teacher quality. These effects appear to be driven by the low-graded schools becoming more attractive to teachers. However, at the top end of the school grade distribution (the A/B and B/C thresholds), the results differ. Here, I find no evidence of positive effects of receiving a lower grade, and some suggestive evidence of negative impacts on the quality of the joiners relative to the leavers and on teacher survey responses about their principals' leadership.The difference in the results at the top and bottom ends of the grade distribution (i.e., the fact that accountability seems to benefit lower-rated schools at the C/D and D/F thresholds while hurting them at the A/B and B/C thresholds) likely reflects the fact that accountability pressures are higher at the C/D and D/F thresholds, and so only motivated positive changes there (Rockoff and Turner, 2010). 2 Are there other ingredients besides high stakes that help us predict when accountability systems will posi...