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The Effect of High Stakes High School Achievement Awards: Evidence from a School-Centered Randomized Trial

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Author Info
Angrist, Joshua D. () (Massachusetts Institute of Technology, NBER and IZA Bonn)
Lavy, Victor (Hebrew University of Jerusalem)

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Abstract

In many countries, college-bound high school seniors must pass a test or series of tests. In Israel, this requirement is known as the “Bagrut”, or matriculation certificate, obtained by passing a series of subject tests. In spite of the Bagrut’s value, Israeli society is marked by vast differences in Bagrut rates by region and socioeconomic status. We attempted to increase the likelihood of Bagrut certification among low-achieving students by offering substantial cash incentives to high school seniors in an experimental demonstration program. As a theoretical matter, such incentives may be helpful if low-achieving students reduce investment in schooling because of high discount rates, part-time work, or face peer pressure not to study. The experiment studied here used a school-based randomization design offering awards to all students in treated schools who passed their exams. Randomization was imperfect because of the clustered design. We discuss alternative strategies for dealing with clustering in research of this type. On balance, the estimates point to a substantial and statistically significant treatment effect for students close to the margin for certification. We also look at a number of mediating outcomes in an effort to determine how students responded to incentives. These results show students took more tests and were more likely to accumulate the number of credit units required for Bagrut success.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1146.

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Length: 40 pages
Date of creation: May 2004
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Handle: RePEc:iza:izadps:dp1146

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Related research
Keywords: performance incentives; school reform; clustering;

Other versions of this item:

Find related papers by JEL classification:
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
I28 - Health, Education, and Welfare - - Education - - - Government Policy
C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

This paper has been announced in the following NEP Reports:

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. T. Paul Schultz, 2001. "School Subsidies for the Poor: Evaluating the Mexican Progresa Poverty Program," Working Papers 834, Economic Growth Center, Yale University. [Downloadable!]
    Other versions:
  2. Joshua Angrist & Eric Bettinger & Eric Bloom & Elizabeth King & Michael Kremer, 2002. "Vouchers for Private Schooling in Colombia: Evidence from a Randomized Natural Experiment," Natural Field Experiments 0004, The Field Experiments Website. [Downloadable!]
    Other versions:
  3. Joshua D. Angrist & Victor Lavy, 1999. "Using Maimonides' Rule To Estimate The Effect Of Class Size On Scholastic Achievement," The Quarterly Journal of Economics, MIT Press, vol. 114(2), pages 533-575, May. [Downloadable!] (restricted)
  4. Joshua D. Angrist & Guido W. Imbens, 1991. "Sources of Identifying Information in Evaluation Models," NBER Technical Working Papers 0117, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Victor Lavy, 2002. "Evaluating the Effect of Teachers' Group Performance Incentives on Pupil Achievement," Journal of Political Economy, University of Chicago Press, vol. 110(6), pages 1286-1317, December. [Downloadable!] (restricted)
  6. Jonathan Gruber, 2000. "Risky Behavior Among Youths: An Economic Analysis," NBER Working Papers 7781, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  7. Keane, Michael P & Wolpin, Kenneth I, 2000. "Eliminating Race Differences in School Attainment and Labor Market Success," Journal of Labor Economics, University of Chicago Press, vol. 18(4), pages 614-52, October. [Downloadable!] (restricted)
    Other versions:
  8. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August. [Downloadable!] (restricted)
  9. Thomas J. Kane & Douglas O. Staiger, 2002. "The Promise and Pitfalls of Using Imprecise School Accountability Measures," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 91-114, Fall. [Downloadable!] (restricted)
  10. MacKinnon, James G. & White, Halbert, 1985. "Some heteroskedasticity-consistent covariance matrix estimators with improved finite sample properties," Journal of Econometrics, Elsevier, vol. 29(3), pages 305-325, September. [Downloadable!] (restricted)
    Other versions:
  11. Zvi Eckstein & Kenneth I. Wolpin, 1999. "Why Youths Drop Out of High School: The Impact of Preferences, Opportunities, and Abilities," Econometrica, Econometric Society, vol. 67(6), pages 1295-1340, November.
  12. Joshua D. Angrist & Jinyong Hahn, 1999. "When to Control for Covariates? Panel-Asymptotic Results for Estimates of Treatment Effects," NBER Technical Working Papers 0241, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  13. Angrist, Joshua & Lavy, Victor, 2002. "The Effect of High School Matriculation Awards: Evidence from Randomized Trials," CEPR Discussion Papers 3827, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  14. Chesher, Andrew & Jewitt, Ian, 1987. "The Bias of a Heteroskedasticity Consistent Covariance Matrix Estimator," Econometrica, Econometric Society, vol. 55(5), pages 1217-22, September. [Downloadable!] (restricted)
  15. Michael Kremer & Edward Miguel & Rebecca Thornton, 2004. "Incentives to Learn," NBER Working Papers 10971, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
Full references

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. Victor Lavy, 2004. "Performance Pay and Teachers' Effort, Productivity and Grading Ethics," NBER Working Papers 10622, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Victor Lavy & Analía Schlosser, 2007. "Mechanisms and Impacts of Gender Peer Effects at School," NBER Working Papers 13292, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Maarten Cornet & Fré Huizinga & Bert Minne & Dinand Webbink, 2006. "Successful knowledge policies," CPB Memoranda 158, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  4. Sharon Bernhardt, 2006. "Participation in a School Incentive Programme in Karnataka," Working Papers id:319, esocialsciences.com. [Downloadable!]
  5. Carmit Segal, 2006. "Motivation, Test Scores, and Economic Success," Economics Working Papers 1124, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2008. [Downloadable!]
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