When teachers will face evaluations, they might go look for other options and other jobs. This will make some teachers or potential teachers change their career to other occupations because of the opportunity cost (time and money). To be simple, the demand of teachers in the short run will be constant, but the supply of teacher will decrease. This will decrease the number of teachers and increase the teacher’s salary. The reason is that there will be less competition among teachers and probably they also have to hand over the workload that resigned teachers should have done. While in the long run, the method to become a teacher will be set to take a difficult exam in front.
So gradually people who wanted to be teacher would take the exam anyway, but the number of teachers will be a bit less than before, still because of the opportunity cost. And since the number of teacher decreases a bit (meaning teacher supply decreases), the salary will increase a bit respectively.
Rise in salaries will create more demand for teachers. People are attracted that teachers’ salary is very likely to increase. But we do not know when and what policy will be implemented, the situation might be better or even worse. Five years is already long enough to lose a person’s passion. Thus, in the short run, there will be no change to teachers’ supply or demand curve. I wanted to say that the teacher supply will increase in the short run, but I realize that it will take time from “want to teach” to “ready to teach”. They need to be trained before teaching students. And obviously the salary won’t change as well.
In the long run, if teachers’ salary did not increase as desired, supply will decrease. Those people who began training as teacher five years ago are already in the teachers market right now. So there is an over-supply of teachers, consequently, the salary will decrease. And the supply keeps decreasing because people get disappointed, so the supply of teacher in the long run will be decreasing and more elastic.