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Teacher Bonuses and Teacher Retention in Low-Performing Schools

Author

Listed:
  • Charles T. Clotfelter

    (Duke University)

  • Elizabeth J. Glennie

    (Duke University)

  • Helen F. Ladd

    (Duke University)

  • Jacob L. Vigdor

    (Duke University)

Abstract

Between 2001 and 2004, the state of North Carolina gave an annual salary bonus of $1,800 to certified math, science, and special education teachers in a set of low-performing and/or high-poverty secondary schools. Eligible teachers were to continue receiving the bonus as long as they continued in the school. In a survey of teachers and principals, the authors find evidence that school personnel favor the use of monetary incentives to increase the attractiveness of their workplace but were skeptical that the amount of the bonus would be sufficient to reduce the high turnover rates in their schools. Preliminary evidence on turnover rates supports this skepticism. Given that the survey evidence reveals widespread misunderstanding of the retention incentives incorporated into the program, the authors conclude that the bonus program was hampered by a series of flaws in design and implementation.

Suggested Citation

  • Charles T. Clotfelter & Elizabeth J. Glennie & Helen F. Ladd & Jacob L. Vigdor, 2008. "Teacher Bonuses and Teacher Retention in Low-Performing Schools," Public Finance Review, , vol. 36(1), pages 63-87, January.
    • Handle: RePEc:sae:pubfin:v:36:y:2008:i:1:p:63-87
    DOI: 10.1177/1091142106291662
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    References listed on IDEAS

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    1. Donald Boyd & Hamilton Lankford & Susanna Loeb & James Wyckoff, 2005. "Explaining the Short Careers of High-Achieving Teachers in Schools with Low-Performing Students," American Economic Review, American Economic Association, vol. 95(2), pages 166-171, May.
    2. Susanna Loeb & Marianne E. Page, 2000. "Examining The Link Between Teacher Wages And Student Outcomes: The Importance Of Alternative Labor Market Opportunities And Non-Pecuniary Variation," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 393-408, August.
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    Cited by:

    1. Gentile, Elisabetta & Imberman, Scott A., 2012. "Dressed for success? The effect of school uniforms on student achievement and behavior," Journal of Urban Economics, Elsevier, vol. 71(1), pages 1-17.
    2. Daniel Aaronson & Katherine Meckel, 2009. "How will baby boomer retirements affect teacher labor markets?," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 33(Q IV), pages 2-15.
    3. Cory Koedel & Jiaxi Li, 2016. "The Efficiency Implications Of Using Proportional Evaluations To Shape The Teaching Workforce," Contemporary Economic Policy, Western Economic Association International, vol. 34(1), pages 47-62, January.
    4. Justin Joffrion & Nathan Wozny, 2015. "Military Retention Incentives: Evidence from the Air Force Selective Reenlistment Bonus," Upjohn Working Papers 15-226, W.E. Upjohn Institute for Employment Research.
    5. Abayasekara, Ashani & Arunatilake, Nisha, 2018. "School-level resource allocation and education outcomes in Sri Lanka," International Journal of Educational Development, Elsevier, vol. 61(C), pages 127-141.
    6. Martin, Stephanie M., 2010. "The determinants of school district salary incentives: An empirical analysis of, where and why," Economics of Education Review, Elsevier, vol. 29(6), pages 1143-1153, December.

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