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Cross-Country Evidence on Teacher Performance Pay

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Author Info

  • Woessmann, Ludger

    ()
    (Ifo Institute for Economic Research)

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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5101.

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Length: 32 pages
Date of creation: Jul 2010
Date of revision:
Publication status: published in: Economics of Education Review, 2011, 30 (3), 404-418
Handle: RePEc:iza:izadps:dp5101

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

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References

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  1. 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.
  2. Eric A. Hanushek & Ludger Woessmann, 2005. "Does Educational Tracking Affect Performance and Inequality? Differences-in-Differences Evidence across Countries," NBER Working Papers 11124, National Bureau of Economic Research, Inc.
  3. 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.
  4. 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.
  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. Wößmann, Ludger, 2003. "Schooling resources, educational institutions and student performance: The international evidence," Munich Reprints in Economics 19661, University of Munich, Department of Economics.
  7. Dohmen Thomas & Falk Armin, 2010. "You get what you pay for: Incentives and Selection in the Education System," Research Memorandum 011, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  8. Ludger Wösmann, 2005. "Educational production in Europe," Economic Policy, CEPR & CES & MSH, vol. 20(43), pages 445-504, 07.
  9. Figlio, David N. & Kenny, Lawrence W., 2007. "Individual teacher incentives and student performance," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 901-914, June.
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  11. Karthik Muralidharan & Venkatesh Sundararaman, 2009. "Teacher Performance Pay: Experimental Evidence from India," NBER Working Papers 15323, National Bureau of Economic Research, Inc.
  12. Jong-Wha Lee & Robert J. Barro, 1997. "Schooling Quality in a Cross Section of Countries," NBER Working Papers 6198, National Bureau of Economic Research, Inc.
  13. Paul Glewwe & Nauman Ilias & Micheal Kremer, 2003. "Teacher incentives," Natural Field Experiments 00257, The Field Experiments Website.
  14. Caroline M. Hoxby & Andrew Leigh, 2004. "Pulled Away or Pushed Out? Explaining the Decline of Teacher Aptitude in the United States," American Economic Review, American Economic Association, vol. 94(2), pages 236-240, May.
  15. Ballou, Dale, 2001. "Pay for performance in public and private schools," Economics of Education Review, Elsevier, vol. 20(1), pages 51-61, February.
  16. 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.
  17. 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.
  18. Eric A. Hanushek & John F. Kain & Steven G. Rivkin, 1998. "Teachers, Schools, and Academic Achievement," NBER Working Papers 6691, National Bureau of Economic Research, Inc.
  19. 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.
  20. 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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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. 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).
  2. 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.
  3. Strauss, Jack, 2013. "The Economic Gains to Colorado of Amendment 66," MPRA Paper 49928, University Library of Munich, Germany.
  4. 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.
  5. 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.
  6. Hanushek, Eric A., 2011. "The economic value of higher teacher quality," Economics of Education Review, Elsevier, vol. 30(3), pages 466-479, June.
  7. 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.
  8. 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.
  9. Leigh, Andrew, 2012. "Teacher pay and teacher aptitude," Economics of Education Review, Elsevier, vol. 31(3), pages 41-53.

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