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Teacher quality and incentives - Theoretical and empirical effects of standards on teacher quality

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  • Hendrik Jürges

    ()

  • Wolfram F. Richter
  • Kerstin Schneider

    (Munich Center for the Economics of Aging (MEA))

Abstract

Applying the theory of yardstick competition to the schooling system, we show that it is optimal to have central tests of student achievement and to engage in benchmarking because it raises the quality of teaching. This is true even if teachers’ pay (defined in monetary terms) is not performance related. If teachers value reputation, and if teaching output is measured so that it becomes comparable, teachers will increase their effort. The theory is tested using the German PISA-E data. Use is made of the fact that central exams exist in some federal states of Germany but not in all. The empirical evidence suggests that central exams have a positive effect on the quality of teaching.

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Paper provided by Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy in its series MEA discussion paper series with number 05091.

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Date of creation: 30 Jun 2005
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Handle: RePEc:mea:meawpa:05091

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References

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  1. Edward P. Lazear, 2004. "Speeding, Tax Fraud, and Teaching to the Test," NBER Working Papers 10932, National Bureau of Economic Research, Inc.
  2. Bishop, J., 1997. "The Effect of national Standards and Curriculum-Based Exams on Achievement," Papers 97-01, Cornell - Center for Advanced Human Resource Studies.
  3. Hendrik Jürges & Kerstin Schneider & Felix Büchel, 2005. "The Effect Of Central Exit Examinations On Student Achievement: Quasi-Experimental Evidence From TIMSS Germany," Journal of the European Economic Association, MIT Press, vol. 3(5), pages 1134-1155, 09.
  4. Angrist, Joshua & Guryan, Jonathan, 2005. "Does Teacher Testing Raise Teacher Quality? Evidence from State Certification Requirements," IZA Discussion Papers 1500, Institute for the Study of Labor (IZA).
  5. Hendrik Jürges & Kerstin Schneider, 2004. "International Differences in Student Achievement: An Economic Perspective," German Economic Review, Verein für Socialpolitik, vol. 5(3), pages 357-380, 08.
  6. 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.
  7. Matthias Effinger & Mattias Polborn, 1999. "A model of vertically differentiated education," Journal of Economics, Springer, vol. 69(1), pages 53-69, February.
  8. Paul Glewwe & Nauman Ilias & Micheal Kremer, 2003. "Teacher incentives," Natural Field Experiments 00257, The Field Experiments Website.
  9. Richard Blundell & Monica Costa Dias, 2000. "Evaluation methods for non-experimental data," Fiscal Studies, Institute for Fiscal Studies, vol. 21(4), pages 427-468, January.
  10. Victor Lavy, 2004. "Performance Pay and Teachers' Effort, Productivity and Grading Ethics," NBER Working Papers 10622, National Bureau of Economic Research, Inc.
  11. Bishop, John H, 1997. "The Effect of National Standards and Curriculum-Based Exams on Achievement," American Economic Review, American Economic Association, vol. 87(2), pages 260-64, May.
  12. Eric A. Hanushek & John F. Kain & Steven G. Rivkin, 1999. "Do Higher Salaries Buy Better Teachers?," NBER Working Papers 7082, National Bureau of Economic Research, Inc.
  13. Mark Armstrong & Simon Cowan & John Vickers, 1994. "Regulatory Reform: Economic Analysis and British Experience," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262510790, December.
  14. Wößmann, Ludger, 2002. "Central Exams Improve Educational Performance: International Evidence," Kiel Discussion Papers 397, Kiel Institute for the World Economy (IfW).
  15. Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Wiley Blackwell, vol. 65(2), pages 261-94, April.
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Cited by:
  1. Ludger Woessmann, 2007. "Fundamental Determinants of School Efficiency and Equity: German States as a Microcosm for OECD Countries," CESifo Working Paper Series 1981, CESifo Group Munich.
  2. Kerstin Schneider & Hendrik Jürges, 2008. "Central exit examinations increase performance... but take the fun out of mathematics," Schumpeter Discussion Papers sdp08001, Universitätsbibliothek Wuppertal, University Library.
  3. Piopiunik, Marc & Schwerdt, Guido & Woessmann, Ludger, 2012. "Central School Exit Exams and Labor-Market Outcomes," IZA Discussion Papers 6889, Institute for the Study of Labor (IZA).
  4. Ludger Wößmann, 2005. "Leistungsfördernde Anreize für das Schulsystem," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 58(19), pages 18-27, October.
  5. Jürges, Hendrik & Schneider, Kerstin & Senkbeil, Martin & Carstensen, Claus H., 2012. "Assessment drives learning: The effect of central exit exams on curricular knowledge and mathematical literacy," Economics of Education Review, Elsevier, vol. 31(1), pages 56-65.
  6. Schwager, Robert, 2012. "Grade inflation, social background, and labour market matching," Journal of Economic Behavior & Organization, Elsevier, vol. 82(1), pages 56-66.
  7. Himmler, Oliver & Schwager, Robert, 2007. "Double Standards in Educational Standards: Are Disadvantaged Students Being Graded More Leniently?," ZEW Discussion Papers 07-016, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  8. Hendrik Jürges & Kerstin Schneider, 2007. "Fair ranking of teachers," Empirical Economics, Springer, vol. 32(2), pages 411-431, May.
  9. Wößmann, Ludger, 2010. "Institutional Determinants of School Efficiency and Equity: German States as a Microcosm for OECD Countries," Munich Reprints in Economics 19681, University of Munich, Department of Economics.
  10. Michael Fertig, 2004. "What Can We Learn From International Student Performance Studies? Some Methodological Remarks," RWI Discussion Papers 0023, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
  11. Fumitoshi Mizutani & Hideo Kozumi & Noriaki Matsushima, 2009. "Does yardstick regulation really work? Empirical evidence from Japan’s rail industry," Journal of Regulatory Economics, Springer, vol. 36(3), pages 308-323, December.
  12. Wößmann, Ludger, 2006. "Bildungspolitische Lehren aus den internationalen Schülertests: Wettbewerb, Autonomie und externe Leistungsüberprüfung," Munich Reprints in Economics 19653, University of Munich, Department of Economics.
  13. Jaag, Christian, 2006. "Teacher Incentives," MPRA Paper 340, University Library of Munich, Germany.
  14. Benedikt Langner & Jochen Siller, 2008. "Institutionelle Anreizfaktoren im deutschen Schulsystem: Status quo und Reformoptionen am Beispiel Nordrhein-Westfalens," Otto-Wolff-Institut Discussion Paper Series 03/2008, Otto-Wolff-Institut für Wirtschaftsordnung, Köln, Deutschland.
  15. Robert Schwager, 2005. "PISA-Schock und Hochschulmisere - Hat der deutsche Bildungsföderalismus versagt?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 6(2), pages 189-205, 05.

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