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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

    ()

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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File URL: http://www.bris.ac.uk/Depts/CMPO/workingpapers/wp113.pdf
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Bibliographic 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;

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References

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  1. Daniel Aaronson & Lisa Barrow & William Sander, 2002. "Teachers and student achievement in the Chicago public high schools," Working Paper Series WP-02-28, Federal Reserve Bank of Chicago.
  2. Steven G. Rivkin & Eric A. Hanushek & John F. Kain, 2005. "Teachers, Schools, and Academic Achievement," Econometrica, Econometric Society, vol. 73(2), pages 417-458, 03.
  3. Simon Burgess & Marisa Ratto, 2003. "The Role of Incentives in the Public Sector: Issues and Evidence," The Centre for Market and Public Organisation 03/071, Department of Economics, University of Bristol, UK.
  4. Pascal Courty & Gerald Marschke, 2002. "Performance Incentives with Award Constraints," Journal of Human Resources, University of Wisconsin Press, vol. 37(4), pages 812-845.
  5. Victor Lavy, 2004. "Performance Pay and Teachers' Effort, Productivity and Grading Ethics," NBER Working Papers 10622, National Bureau of Economic Research, Inc.
  6. Paul Glewwe & Nauman Ilias & Michael Kremer, 2003. "Teacher Incentives," NBER Working Papers 9671, National Bureau of Economic Research, Inc.
  7. Simon Burgess & Marisa Ratto, 2003. "The Role of Incentives in the Public Sector: Issues and Evidence," Oxford Review of Economic Policy, Oxford University Press, vol. 19(2), pages 285-300, Summer.
  8. Jonah E. Rockoff, 2004. "The Impact of Individual Teachers on Student Achievement: Evidence from Panel Data," American Economic Review, American Economic Association, vol. 94(2), pages 247-252, May.
  9. Randall Eberts & Kevin Hollenbeck & Joe Stone, 2000. "Teacher Performance Incentives and Student Outcomes," Upjohn Working Papers and Journal Articles 00-65, W.E. Upjohn Institute for Employment Research.
  10. David Marsden, 2000. "Teachers Before the Threshold," CEP Discussion Papers dp0454, Centre for Economic Performance, LSE.
  11. Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March.
  12. Ladd, Helen F., 1996. "The Dallas School Accountability and Incentive Program: An Evaluation of Its Impacts on Student Outcomes," Working Papers 96-18, Duke University, Department of Economics.
  13. Cooper, Samuel T. & Cohn, Elchanan, 1997. "Estimation of a frontier production function for the South Carolina educational process," Economics of Education Review, Elsevier, vol. 16(3), pages 313-327, June.
  14. Edward P. Lazear, 1999. "Personnel Economics: Past Lessons and Future Directions," NBER Working Papers 6957, National Bureau of Economic Research, Inc.
  15. Avinash Dixit, 2002. "# Incentives and Organizations in the Public Sector: An Interpretative Review," Journal of Human Resources, University of Wisconsin Press, vol. 37(4), pages 696-727.
  16. Thomas S. Dee & Benjamin J. Keys, 2004. "Does merit pay reward good teachers? Evidence from a randomized experiment," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 23(3), pages 471-488.
  17. 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.
  18. Charles T. Clotfelter & Helen F. Ladd & Jacob L. Vigdor, 2007. "How and Why do Teacher Credentials Matter for Student Achievement?," NBER Working Papers 12828, National Bureau of Economic Research, Inc.
  19. 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.
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