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Teacher Performance Pay and Student Learning: Evidence from a Nationwide Program in Peru

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  • Cristina Bellés-Obrero
  • María Lombardi

Abstract

We study the impact of a nationwide teacher pay-for-performance program in Peru. Public secondary schools compete in a tournament based on eighth graders’ performance in a standardized test. The principal and teachers of winning schools receive a substantial bonus. We perform a difference-in-differences estimation comparing the internal grades of eighth and ninth graders of the same school, before and after the program. We find a precisely estimated zero effect on student achievement, which could be a consequence of teachers’ uncertainty about how to improve their students’ performance in the standardized test tied to the bonus.

Suggested Citation

  • Cristina Bellés-Obrero & María Lombardi, 2022. "Teacher Performance Pay and Student Learning: Evidence from a Nationwide Program in Peru," Economic Development and Cultural Change, University of Chicago Press, vol. 70(4), pages 1631-1669.
    • Handle: RePEc:ucp:ecdecc:doi:10.1086/714012
    DOI: 10.1086/714012
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