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On Policies To Reward The Value Added By Educators

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Author Info
John Cawley
James Heckman
Edward Vytlacil

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Abstract

One current educational reform seeks to reward the "value added" by teachers and schools based on the average change in pupil test scores over time. In this paper, we outline the conditions under which the average change in scores is sufficient to rank schools in terms of value added. A key condition is that socioeconomic outcomes be a linear function of test scores. Absent this condition, one can still derive the optimal value-added policy if one knows the relationship between test scores and socioeconomic outcomes, and the distribution of test scores both before and after the intervention. Using the National Longitudinal Survey of Youth, we find a nonlinear relationship between test scores and one important outcome: log wages. We find no consistent pattern in the curvature of log wage returns to test scores (whether percentiles, scaled, or raw scores). This implies that, used alone, the average gain in test scores is an inadequate measure of school performance and current value-added methodology may misdirect school resources. © 2000 by the President and Fellows of Harvard College and the Massachusetts Institute of Technolog

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Publisher Info
Article provided by MIT Press in its journal The Review of Economics and Statistics.

Volume (Year): 81 (1999)
Issue (Month): 4 (November)
Pages: 720-727
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Handle: RePEc:tpr:restat:v:81:y:1999:i:4:p:720-727

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Web page: http://mitpress.mit.edu/journals/

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  1. repec:fth:prinin:451 is not listed on IDEAS
  2. Janet Currie & Duncan Thomas, 1999. "Early Test Scores, Socioeconomic Status and Future Outcomes," NBER Working Papers 6943, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Pedro Carneiro & James J. Heckman & Dimitriy V. Masterov, 2003. "Labor Market Discrimination and Racial Differences in Premarket Factors," NBER Working Papers 10068, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Alan Krueger & Diane Whitmore, 2001. "Would Smaller Classes Help Close the Black-White Achievement Gap?," Working Papers 830, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  5. James J. Heckman, 1999. "Policies to Foster Human Capital," NBER Working Papers 7288, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  6. Dale J. Poirier & Gary Koop & Justin Tobias, 2005. "Semiparametric Bayesian inference in multiple equation models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(6), pages 723-747. [Downloadable!]
    Other versions:
  7. Elizabeth Webster & Mark Wooden & Gary Marks, 2004. "Reforming the Labour Market for Australian Teachers," Melbourne Institute Working Paper Series wp2004n28, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
  8. James J. Heckman & Dimitriy V. Masterov, 2005. "Allander Series: Skill Policies for Scotland," NBER Working Papers 11032, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Mototsugu Fukushige & Hideo Yunoue, 2006. "Valuing Medical Schools in Japan: National versus Private Universities," Discussion Papers in Economics and Business 06-02, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP). [Downloadable!]
  10. Heckman, James J. & Masterov, Dimitriy V., 2004. "Skill Policies for Scotland," IZA Discussion Papers 1444, Institute for the Study of Labor (IZA). [Downloadable!]
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