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Cross-Country Evidence on Teacher Performance Pay

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  • 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. Eric Hanushek & Ludger Woessmann, 2010. "The Economics of International Differences in Educational Achievement," Discussion Papers 09-013, Stanford Institute for Economic Policy Research.
  2. 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.
  3. 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.
  4. 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.
  5. Ludger Wösmann, 2005. "Educational production in Europe," Economic Policy, CEPR & CES & MSH, vol. 20(43), pages 445-504, 07.
  6. Lee, J.-W. & Barro, R.J., 1998. "Schooling Quality in a Cross Section of Countries," Papers 659, Harvard - Institute for International Development.
  7. 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.
  8. 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.
  9. Karthik Muralidharan & Venkatesh Sundararaman, 2009. "Teacher Performance Pay: Experimental Evidence from India," NBER Working Papers 15323, National Bureau of Economic Research, Inc.
  10. 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.
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  12. 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.
  13. Ballou, Dale, 2001. "Pay for performance in public and private schools," Economics of Education Review, Elsevier, vol. 20(1), pages 51-61, February.
  14. Paul Glewwe & Nauman Ilias & Micheal Kremer, 2003. "Teacher incentives," Natural Field Experiments 00257, The Field Experiments Website.
  15. 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.
  16. 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.
  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. 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.
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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. Felipe Barrera-Osorio & Dario Maldonado & Catherine Rodríguez, 2012. "Calidad de la educación básica y media en Colombia: diagnóstico y propuestas," DOCUMENTOS DE TRABAJO 010078, UNIVERSIDAD DEL ROSARIO.
  3. 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.
  4. Eric A. Hanushek, 2010. "The Economic Value of Higher Teacher Quality," NBER Working Papers 16606, National Bureau of Economic Research, Inc.

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