Who chooses teaching under different labor market conditions? Evidence from West Germany, 1980–2009

• I examine changes in teacher labor market conditions over three decades.
• I examine who self-selects into teaching under different labor market conditions.
• Earnings have not declined over time, likewise, academic aptitude has not declined.
• Employment prospects have fluctuated greatly, influencing who is motivated to choose teaching.

To shed light on this question, this paper analyzes trends in labor market conditions and trends in teacher graduates' characteristics over three decades. Based on representative data from West Germany, it shows that teacher earnings have not declined over time. Likewise, there is no decline in academic aptitude among teacher graduates. Unemployment risks, on the other hand, have fluctuated greatly. In times of high unemployment risks, the likelihood to enter teaching was low, especially for persons with pronounced extrinsic job-security motivations. This changed markedly in recent years, when employment prospects became auspicious.