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Monetary Incentives And Student Achievement In A Depressed Labour Market: Results From A Randomized Experiment

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  • Maria De Paola

    ()

  • Vincenzo Scoppa

    ()

  • Rosanna Nisticò

    ()
    (Dipartimento di Economia e Statistica, Università della Calabria)

Abstract

In this paper we carry out an evaluation of the effectiveness of monetary incentives in enhancing student performance using a randomized experiment involving undergraduate students enrolled at a Southern Italian University. Students participating at the experiment were assigned to three different groups: a high reward group, a low reward group and a control group. Rewards were assigned following a tournament rule to the 30 best performing students in each treated group. Findings suggest that financial rewards increase student performance both in terms of number of credits earned and grades obtained at exams. High ability students react strongly while the effect is null for low ability students. When the “intention-to-treat” effects are adjusted for non-participation using IV, it emerges a stronger impact of the treatment on student performance.

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File URL: http://www.ecostat.unical.it/RePEc/WorkingPapers/WP06_2010.pdf
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Bibliographic Info

Paper provided by Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica) in its series Working Papers with number 201006.

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Length: 21 pages
Date of creation: Apr 2010
Date of revision:
Handle: RePEc:clb:wpaper:201006

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Postal: Università della Calabria, Dipartimento di Economia, Statistica e Finanza, Ponte Pietro Bucci, Cubo 0/C, I-87036 Arcavacata di Rende, CS, Italy
Phone: +39 0984 492413
Fax: +39 0984 492421
Web page: http://www.unical.it/portale/strutture/dipartimenti_240/disesf/
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Keywords: Education Production Function; Student Effort; Incentives; Merit Scholarship; Higher Education; Randomized Evaluation;

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References

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  1. Alan B. Krueger, 1997. "Experimental Estimates of Education Production Functions," NBER Working Papers 6051, National Bureau of Economic Research, Inc.
  2. Michael Kremer & Edward Miguel & Rebecca Thornton, 2004. "Incentives to Learn," NBER Working Papers 10971, National Bureau of Economic Research, Inc.
  3. M. De Paola & V. Scoppa, 2007. "Returns to skills, incentives to study and optimal educational standards," Journal of Economics, Springer, vol. 92(3), pages 229-262, December.
  4. Joshua Angrist & Eric Bettinger & Erik Bloom & Elizabeth King & Michael Kremer, 2002. "Vouchers for private schooling in colombia: Evidence from a randomized natural experiment," Natural Field Experiments 00203, The Field Experiments Website.
  5. Angrist, Joshua & Lang, Daniel W. & Oreopoulos, Philip, 2007. "Incentives and Services for College Achievement: Evidence from a Randomized Trial," IZA Discussion Papers 3134, Institute for the Study of Labor (IZA).
  6. Todd R. Stinebrickner & Ralph Stinebrickner, 2007. "The Causal Effect of Studying on Academic Performance," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20072, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  7. Luigi Pistaferri, 1999. "Informal Networks in the Italian Labor Market," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 58(3-4), pages 355-375, December.
  8. Costrell, Robert M, 1994. "A Simple Model of Educational Standards," American Economic Review, American Economic Association, vol. 84(4), pages 956-71, September.
  9. Christopher M. Cornwell & Kyung Hee Lee & David B. Mustard, 2005. "Student Responses to Merit Scholarship Retention Rules," Journal of Human Resources, University of Wisconsin Press, vol. 40(4), pages 895-917.
  10. Edwin Leuven & Hessel Oosterbeek & Bas van der Klaauw, 2010. "The Effect of Financial Rewards on Students' Achievement: Evidence from a Randomized Experiment," Journal of the European Economic Association, MIT Press, vol. 8(6), pages 1243-1265, December.
  11. Joshua D. Angrist & Victor Lavy, 2002. "The Effect of High School Matriculation Awards: Evidence from Randomized Trials," NBER Working Papers 9389, National Bureau of Economic Research, Inc.
  12. Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March.
  13. Albert Alesina & Stephan Danninger & Massimo Rostagno, 2001. "Redistribution Through Public Employment: The Case of Italy," IMF Staff Papers, Palgrave Macmillan, vol. 48(3), pages 2.
  14. Joshua Angrist & Eric Bettinger & Michael Kremer, 2006. "Long-Term Educational Consequences of Secondary School Vouchers: Evidence from Administrative Records in Colombia," American Economic Review, American Economic Association, vol. 96(3), pages 847-862, June.
  15. Holmstrom, Bengt & Milgrom, Paul, 1991. "Multitask Principal-Agent Analyses: Incentive Contracts, Asset Ownership, and Job Design," Journal of Law, Economics and Organization, Oxford University Press, vol. 7(0), pages 24-52, Special I.
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Cited by:
  1. Brunello, Giorgio & De Paola, Maria, 2013. "The Costs of Early School Leaving in Europe," IZA Discussion Papers 7791, Institute for the Study of Labor (IZA).
  2. Sandner, Malte, 2013. "Quasi-Experimental Evaluation of a Student Mentoring Program," Hannover Economic Papers (HEP) dp-512, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
  3. Maria De Paola & Vincenzo Scoppa, 2011. "The Effectiveness Of Remedial Courses In Italy: A Fuzzy Regression Discontinuity Design," Working Papers 201114, Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica).

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