A wide body of evidence indicates that there is a large inequality in the distribution of teachers across schools. Relatedly, recent research has revealed a number of important dimensions of teacher labor markets in the United States. We review the literature in two of these areas: the geography of teacher labor markets and the decision-making process on the part of districts, schools, and teachers. Our review leads us to several conclusions, including that teacher labor markets are geographically small and, thus, highly localized and also that teacher hiring decisions are largely made by local school leaders. Taken together, this evidence has important implications regarding both the local nature of teacher labor markets and how this localism has the potential to reinforce and exacerbate inequities across schools and districts.