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Information, Market Incentives, and Student Performance

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Author Info

  • Camargo, Braz

    ()
    (Sao Paulo School of Economics)

  • Camelo, Rafael

    ()
    (Sao Paulo School of Economics)

  • Firpo, Sergio

    ()
    (Sao Paulo School of Economics)

  • Ponczek, Vladimir

    ()
    (Sao Paulo School of Economics)

Abstract

This paper uses a discontinuity on the test score disclosure rules of the National Secondary Education Examination in Brazil to test whether test score disclosure affects student performance, the composition of students in schools, and school observable inputs. We find that test score disclosure has a heterogeneous impact on test scores, but only increases average test scores in private schools. Since test score disclosure has no impact on student composition and school observable inputs in both public and private schools, our results suggest that test score disclosure changes the behavior of teachers and school managers in private schools by affecting the market incentives faced by such schools. We also develop a model of school and student behavior to help explain our empirical findings.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7941.

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Length: 39 pages
Date of creation: Jan 2014
Date of revision:
Handle: RePEc:iza:izadps:dp7941

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Keywords: test score disclosure; market incentives; public and private schools;

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  1. Pierre Koning, 2010. "School responsiveness to quality ranking: An empirical analysis of secondary education in the Netherlands," CPB Discussion Paper 149, CPB Netherlands Bureau for Economic Policy Analysis.
  2. Justine S. Hastings & Jeffrey M. Weinstein, 2007. "Information, School Choice, and Academic Achievement: Evidence from Two Experiments," NBER Working Papers 13623, National Bureau of Economic Research, Inc.
  3. Figlio, David N. & Kenny, Lawrence W., 2009. "Public sector performance measurement and stakeholder support," Journal of Public Economics, Elsevier, vol. 93(9-10), pages 1069-1077, October.
  4. Mizala, Alejandra & Romaguera, Pilar & Urquiola, Miguel, 2007. "Socioeconomic status or noise? Tradeoffs in the generation of school quality information," Journal of Development Economics, Elsevier, vol. 84(1), pages 61-75, September.
  5. David N. Figlio & Maurice E. Lucas, 2004. "What's in a Grade? School Report Cards and the Housing Market," American Economic Review, American Economic Association, vol. 94(3), pages 591-604, June.
  6. Karthik Muralidharan & Venkatesh Sundararaman, 2009. "Teacher Performance Pay: Experimental Evidence from India," NBER Working Papers 15323, National Bureau of Economic Research, Inc.
  7. Sandra E. Black, 1997. "Do better schools matter? Parental valuation of elementary education," Research Paper 9729, Federal Reserve Bank of New York.
  8. David S. Lee & Thomas Lemieux, 2009. "Regression Discontinuity Designs In Economics," Working Papers 1118, Princeton University, Department of Economics, Industrial Relations Section..
  9. Eric A. Hanushek & Margaret E. Raymond, 2004. "Does School Accountability Lead to Improved Student Performance?," NBER Working Papers 10591, National Bureau of Economic Research, Inc.
  10. Fack, Gabrielle & Grenet, Julien, 2010. "When do better schools raise housing prices? Evidence from Paris public and private schools," Journal of Public Economics, Elsevier, vol. 94(1-2), pages 59-77, February.
  11. Bengt Holmstrom, 1999. "Managerial Incentive Problems: A Dynamic Perspective," NBER Working Papers 6875, National Bureau of Economic Research, Inc.
  12. Podgursky, Michael & Springer, Matthew, 2011. "Teacher Compensation Systems In The United States K-12 Public School System," National Tax Journal, National Tax Association, vol. 64(1), pages 165-92, March.
  13. Jonah Rockoff & Lesley J. Turner, 2010. "Short-Run Impacts of Accountability on School Quality," American Economic Journal: Economic Policy, American Economic Association, vol. 2(4), pages 119-47, November.
  14. Pierre Koning & Karen van der Wiel, 2013. "Ranking The Schools: How School-Quality Information Affects School Choice In The Netherlands," Journal of the European Economic Association, European Economic Association, vol. 11(2), pages 466-493, 04.
  15. Hahn, Jinyong & Todd, Petra & Van der Klaauw, Wilbert, 2001. "Identification and Estimation of Treatment Effects with a Regression-Discontinuity Design," Econometrica, Econometric Society, vol. 69(1), pages 201-09, January.
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