  In 2012, the School Teachers' Review Body discontinued central guidance and
allowed school discretion in determining teachers' pay in England. Meanwhile,
local education authorities (LEAs) offer non-statutory teacher pay
recommendations to LEA-controlled schools. This study examines how LEAs'
political party control determines their guidance regarding whether to adopt
flexible performance pay or continue seniority-based pay. A regression
discontinuity design is used to address the endogeneity of political control
and educational policy-making. We find that marginally Conservative-controlled
LEAs are more inclined to recommend market-oriented flexible pay structures.
The results remain robust to alternative specifications. This study reveals
that politics matter in England's local educational policy-making, which has
broad implications for future policy.
