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Cross-Country Evidence on Teacher Performance Pay

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  • Ludger Woessmann

Abstract

The general-equilibrium effects of performance-related teacher pay include long-term incentive and teacher-sorting mechanisms that usually elude experimental studies but are captured in cross-country comparisons. Combining country-level performance-pay measures with rich PISA-2003 international achievement micro data, this paper estimates student-level international education production functions. The use of teacher salary adjustments for outstanding performance is significantly associated with math, science, and reading achievement across countries. Scores in countries with performance-related pay are about one quarter standard deviations higher. Results avoid bias from within-country selection and are robust to continental fixed effects and to controlling for non-performance-based forms of teacher salary adjustments.

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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3151.

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Date of creation: 2010
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Handle: RePEc:ces:ceswps:_3151

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Keywords: teacher performance pay; student achievement; international; PISA;

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References

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  1. Wößmann, Ludger, 2005. "Educational production in Europe," Munich Reprints in Economics 19656, University of Munich, Department of Economics.
  2. West, Martin R. & Wößmann, Ludger, 2010. "\"Every catholic child in a catholic school\": Historical resistance to state schooling, contemporary private competition and student achievement across countries," Munich Reprints in Economics 19692, University of Munich, Department of Economics.
  3. Timothy Besley & Maitreesh Ghatak, 2006. "Sorting with Motivated Agents: Implications for School Competition and Teacher Incentives," Journal of the European Economic Association, MIT Press, vol. 4(2-3), pages 404-414, 04-05.
  4. David N. Figlio & Lawrence Kenny, 2006. "Individual Teacher Incentives And Student Performance," NBER Working Papers 12627, National Bureau of Economic Research, Inc.
  5. Eric Hanushek & Ludger Woessmann, 2010. "The Economics of International Differences in Educational Achievement," Discussion Papers 09-013, Stanford Institute for Economic Policy Research.
  6. Lee, J.-W. & Barro, R.J., 1998. "Schooling Quality in a Cross Section of Countries," Papers 659, Harvard - Institute for International Development.
  7. Eric A. Hanushek & Ludger Woessmann, 2005. "Does Educational Tracking Affect Performance and Inequality? Differences-in-Differences Evidence across Countries," CESifo Working Paper Series 1415, CESifo Group Munich.
  8. Karthik Muralidharan & Venkatesh Sundararaman, 2009. "Teacher Performance Pay: Experimental Evidence from India," NBER Working Papers 15323, National Bureau of Economic Research, Inc.
  9. Atkinson, Adele & Burgess, Simon & Croxson, Bronwyn & Gregg, Paul & Propper, Carol & Slater, Helen & Wilson, Deborah, 2009. "Evaluating the impact of performance-related pay for teachers in England," Labour Economics, Elsevier, vol. 16(3), pages 251-261, June.
  10. Eric A. Hanushek & Steven G. Rivkin, 2010. "Generalizations about Using Value-Added Measures of Teacher Quality," American Economic Review, American Economic Association, vol. 100(2), pages 267-71, May.
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  12. Michael J. Podgursky & Matthew G. Springer, 2007. "Teacher performance pay: A review," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 26(4), pages 909-950.
  13. Thomas Dohmen & Armin Falk, 2010. "You Get What You Pay For: Incentives and Selection in the Education System," Economic Journal, Royal Economic Society, vol. 120(546), pages F256-F271, 08.
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  16. 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.
  17. Ludger Woesmann, 2003. "Schooling Resources, Educational Institutions and Student Performance: the International Evidence," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(2), pages 117-170, 05.
  18. Victor Lavy, 2004. "Performance Pay and Teachers' Effort, Productivity and Grading Ethics," NBER Working Papers 10622, National Bureau of Economic Research, Inc.
  19. Peter Dolton & Oscar D. Marcenaro‐Gutierrez, 2011. "If you pay peanuts do you get monkeys? A cross‐country analysis of teacher pay and pupil performance," Economic Policy, CEPR & CES & MSH, vol. 26(65), pages 5-55, January.
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  21. 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.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Cross-Country Evidence on Teacher Performance Pay
    by Ariel Goldring in Free Market Mojo on 2010-08-23 15:09:18
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Cited by:
  1. Christoph Helbach, 2012. "The Interplay of Standardized Tests and Incentives – An Econometric Analysis with Data from PISA 2000 and PISA 2009," Ruhr Economic Papers 0356, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  2. Nieto, Sandra & Ramos, Raul, 2014. "Decomposition of Differences in PISA Results in Middle Income Countries," IZA Discussion Papers 8028, Institute for the Study of Labor (IZA).
  3. Felipe Barrera-Osorio & Darío Maldonado & Catherine Rodríguez, 2012. "Calidad de la Educación Básica y Media en Colombia: Diagnóstico y Propuestas," DOCUMENTOS CEDE 010321, UNIVERSIDAD DE LOS ANDES-CEDE.
  4. Sylvia, Sean & Luo, Renfu & Zhang, Linxiu & Shi, Yaojiang & Medina, Alexis & Rozelle, Scott, 2013. "Do you get what you pay for with school-based health programs? Evidence from a child nutrition experiment in rural China," Economics of Education Review, Elsevier, vol. 37(C), pages 1-12.
  5. Leigh, Andrew, 2012. "Teacher pay and teacher aptitude," Economics of Education Review, Elsevier, vol. 31(3), pages 41-53.
  6. Strauss, Jack, 2013. "The Economic Gains to Colorado of Amendment 66," MPRA Paper 49928, University Library of Munich, Germany.
  7. Goldhaber, Dan & Walch, Joe, 2012. "Strategic pay reform: A student outcomes-based evaluation of Denver's ProComp teacher pay initiative," Economics of Education Review, Elsevier, vol. 31(6), pages 1067-1083.
  8. Eric A. Hanushek, 2010. "The Economic Value of Higher Teacher Quality," NBER Working Papers 16606, National Bureau of Economic Research, Inc.
  9. Baranov, Igor N., 2012. "Quality of Secondary Education in Russia: Between Soviet Legacy and Challenges of Global Competitiveness," Working Papers 538, Graduate School of Management, St. Petersburg State University.

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