economics Paradigm Challenge

Making teacher licensing tests harder doesn't actually get you better teachers—it just leaves you with way fewer of them.

March 13, 2026

Original Paper

Fewer Licenses, Similar Teachers Changing Licensing Tests in Indiana

John Fallon, Marcus A. Winters

SSRN · 6408617

The Takeaway

When Indiana switched to a much more difficult licensing exam, it led to a massive drop in the number of new licenses issued. However, the study found that the teachers who passed were no more effective in the classroom than those under the old, easier system, suggesting the tests act as a barrier to entry without any actual professional benefit.

From the abstract

We use longitudinal administrative data from Indiana to examine changes in teacher quality following the state’s shift to a more difficult licensure test. Despite a significant drop in new licenses issued following the change in the licensure test standard, the overall quality of incoming teachers and the relative quality of licensed teachers compared to unlicensed teachers remained largely unchanged. We find some heterogeneity by subject and school setting, with urban schools experiencing a mod