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Evaluating the Impact of Performance-related Pay for Teachers in England

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Author Info
Adele Atkinson
Simon Burgess
Bronwyn Croxson
Paul Gregg ()

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Abstract

This paper evaluates the impact of a performance-related pay scheme for teachers in England. Using teacher level data, matched with test scores and value-added, we test whether the introduction of a payment scheme based on pupil attainment increased teacher effort. Our evaluation design controls for pupil effects, school effects and teacher effects, and adopts a difference-in-difference methodology. We find that the scheme did improve test scores and value added, on average by about half a grade per pupil. We also find heterogeneity across subjects, with maths teachers showing no improvement.

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Publisher Info
Paper provided by Department of Economics, University of Bristol, UK in its series The Centre for Market and Public Organisation with number 04/113.

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Length: 60 pages
Date of creation: Dec 2004
Date of revision:
Handle: RePEc:bri:cmpowp:04/113

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Related research
Keywords: Incentives teachers pay education reform pupil attainment

Other versions of this item:

Find related papers by JEL classification:
J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
I28 - Health, Education, and Welfare - - Education - - - Government Policy

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. D Marsden, 2000. "Teachers Before the 'Threshold'," CEP Discussion Papers 0454, Centre for Economic Performance, LSE. [Downloadable!]
  2. Courty, Pascal & Marschke, Gerald, 2001. "Performance Incentives with Award Constraints," CEPR Discussion Papers 2720, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  3. Ladd, Helen F., 1999. "The Dallas school accountability and incentive program: an evaluation of its impacts on student outcomes," Economics of Education Review, Elsevier, vol. 18(1), pages 1-16, February. [Downloadable!] (restricted)
    Other versions:
  4. Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March. [Downloadable!] (restricted)
  5. Kahn, Charles M & Silva, Emilson C D & Ziliak, James P, 2001. "Performance-Based Wages in Tax Collection: The Brazilian Tax Collection Reform and Its Effects," Economic Journal, Royal Economic Society, vol. 111(468), pages 188-205, January. [Downloadable!] (restricted)
  6. Murphy, Kevin J., 1999. "Executive compensation," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 38, pages 2485-2563 Elsevier. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Richard Belfield & David Marsden, 2006. "Pay for Performance Where Output is Hard to Measure: the Case of Performance Pay for School Teachers," CEP Discussion Papers dp0747, Centre for Economic Performance, LSE. [Downloadable!]
  2. Adele Atkinson & Simon Burgess & Paul Gregg & Carol Propper & Steven Proud, 2008. "The Impact of Classroom Peer Groups on Pupil GCSE Results," The Centre for Market and Public Organisation 08/187, Department of Economics, University of Bristol, UK. [Downloadable!]
  3. Helen Simpson, 2007. "Productivity in Public Services," The Centre for Market and Public Organisation 07/164, Department of Economics, University of Bristol, UK. [Downloadable!]
  4. Richard Belfield & David Marsden, 2005. "Performance Pay for Teachers: Linking Individual and Organisational Level Targets," CEP Discussion Papers dp0703, Centre for Economic Performance, LSE. [Downloadable!]
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