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The educator shortage in the U.S. disproportionately impacts schools in areas that have been hardest hit by the Covid-19 pandemic, compounding the racial injustices of students of Color. In response, districts and state level education agencies have turned to the promise of teacher residencies, a movement to prepare teachers to work in schools with shortages and diversify the teaching profession. The purpose of this systematic literature review is to report what educational researchers have learned about the unique development and revision processes of residencies in advancing educational equity. Findings focus on the ways residencies center a transformative or social justice mission, focus efforts on transforming inequities within hybrid spaces, and change their programs to further transformation.