Beyond Incentives: Do Schools use Accountability Rewards Productively?
Abstract
"Accountability mandates" -- the explicit linking of school funding, resources, and autonomy to student performance on standardized exams -- have proliferated in the last 10 years. In this paper, we examine California's accountability system, which for several years financially rewarded schools based on a deterministic function of test scores. The sharp discontinuity in the assignment rule -- schools that barely missed their target received no funding -- generates "as good as random" assignment of awards for schools near their eligibility threshold and enables us to estimate the (local average) treatment effect of California's financial award program. This design allows us to explore an understudied aspect of accountability systems -- how schools use their financial rewards. Our findings indicate that California's accountability system significantly increased resources allocated to some schools. In the 2000 school year, the average value of the award was about 60 dollars per student and 50 dollars in 2001. Moreover, we find that the total resources flowing to districts with schools that received awards increased more than dollar for dollar. This resource shift was greatest for districts with schools that qualified for awards in the 2000 school year,the first year of the program, increasing total per pupil revenues by roughly 5 percent. Despite the increase in revenues, we find no evidence that these resources increased student achievement. Schools that won awards did not purchase more instructional material, such as computers, which may be inputs into achievement. Although the awards were likely paid out as teacher bonuses, we cannot detect any effect of these bonuses on test scores or other measures of achievement. More worrisome, we also find a practical effect of assigning the award based in part on the performance of "numerically significant subgroups" within a school was to reduce the relative resources of schools attended by traditionally disadvantaged students.Download Info
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 14775.Length:
Date of creation: Mar 2009
Date of revision:
Handle: RePEc:nbr:nberwo:14775
Note: ED LS PE
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Related research
Keywords:Find related papers by JEL classification:
- H0 - Public Economics - - General
- I0 - Health, Education, and Welfare - - General
- I2 - Health, Education, and Welfare - - Education
- J0 - Labor and Demographic Economics - - General
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-03-14 (All new papers)
- NEP-EDU-2009-03-14 (Education)
- NEP-LAB-2009-03-14 (Labour Economics)
- NEP-URE-2009-03-14 (Urban & Real Estate Economics)
References
References listed on IDEASPlease 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.:
- Kenneth Y. Chay & Patrick J. McEwan & Miguel Urquiola, 2003.
"The Central Role of Noise in Evaluating Interventions that Use Test Scores to Rank Schools,"
NBER Working Papers
10118, National Bureau of Economic Research, Inc.
- Kenneth Y. Chay & Patrick J. McEwan & Miguel Urquiola, 2005. "The Central Role of Noise in Evaluating Interventions That Use Test Scores to Rank Schools," American Economic Review, American Economic Association, vol. 95(4), pages 1237-1258, September.
- Kenneth Chay & Patrick J. McEwan & Miguel Urquiola, 2003. "The Central Role of Noise in Evaluating Interventions that Use Test Scores to Rank Schools," Discussion Papers 0304-10, Columbia University, Department of Economics.
- Baicker, Katherine & Jacobson, Mireille, 2007. "Finders keepers: Forfeiture laws, policing incentives, and local budgets," Journal of Public Economics, Elsevier, vol. 91(11-12), pages 2113-2136, December.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- 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.
- Pierre Koning & Karen Wiel, 2012. "School Responsiveness to Quality Rankings: An Empirical Analysis of Secondary Education in the Netherlands," De Economist, Springer, vol. 160(4), pages 339-355, December.
- Koning, Pierre & van der Wiel, Karen, 2010. "School Responsiveness to Quality Rankings: An Empirical Analysis of Secondary Education in the Netherlands," IZA Discussion Papers 4969, Institute for the Study of Labor (IZA).
- Ginger Zhe Jin & Alex Whalley, 2007. "The Power of Attention: Do Rankings Affect the Financial Resources of Public Colleges?," NBER Working Papers 12941, National Bureau of Economic Research, Inc.
- Craig, Steven G. & Imberman, Scott A. & Perdue, Adam, 2013.
"Does it pay to get an A? School resource allocations in response to accountability ratings,"
Journal of Urban Economics,
Elsevier, vol. 73(1), pages 30-42.
- Steven G. Craig & Scott Imberman & Adam Perdue, 2009. "Does It Pay To Get An A? School Resource Allocations In Response To Accountability Ratings," Working Papers 2009-04, Department of Economics, University of Houston.
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