We investigate the determinants of teacher exits from and mobility within the Queensland state school system. In common with previous research we find that non-pecuniary factors, such as class size and location, affect movement decisions but our results suggest a significant role for pecuniary factors. In particular, higher wages reduce exits from the public sector, especially in the case of more experienced female teachers. Locality allowances paid to teachers in rural and remote schools, where non-pecuniary factors are less attractive, appear to have some success in attracting and retaining staff in these locations.