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To Introduce or Not To Introduce Monetary Bonuses: The Cost of Repealing Teacher Incentives

Author

Listed:
  • Yusuke Jinnai

    (International Univeristy of Japan)

Abstract

Teacher performance pay programs form the foundation of recent reforms in public education. Although existing research has found monetary bonuses for teachers increase student achievement, no studies have examined the potentially negative effects of repealing such incentives. Using novel data from North Carolina, where the state government first reduced and finally repealed its teacher incentive program, this paper shows that student achievement at the lowest-performing schools significantly decreased after the reduction in bonuses and further decreased after the repeal of the incentive program. These findings illustrate that once incentives are introduced it is not cost-free to reduce or remove them.

Suggested Citation

  • Yusuke Jinnai, 2016. "To Introduce or Not To Introduce Monetary Bonuses: The Cost of Repealing Teacher Incentives," Working Papers EMS_2016_08, Research Institute, International University of Japan.
    • Handle: RePEc:iuj:wpaper:ems_2016_08
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    File URL: https://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2016_08.pdf
    File Function: First version, 2016
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    More about this item

    Keywords

    School accountability; Performance pay; Teacher incentives;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • H4 - Public Economics - - Publicly Provided Goods

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