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Does Performance Pay Enhance Social Accountability? Evidence from Remote Schools in Indonesia

Author

Listed:
  • Arya Gaduh
  • Menno Pradhan
  • Jan Priebe
  • Dewi Susanti

Abstract

Social accountability offers a viable alternative to top-down supervision of service delivery in remote areas when travel cost renders the latter ineffective. However, this bottom-up approach may not be effective when the community has weak authority relative to the service provider. This paper investigates whether giving communities authority over teacher performance pay improves the effectiveness of social accountability in Indonesia’s remote schools. We tested incentive contracts based on either camera-verified teacher presence or community ratings of teacher performance. Social accountability had the strongest and most persistent impact on student learning when combined with the former. The results indicate that when the principal (community) has weak authority vis-à-vis the agent (regular teachers), increasing that authority using an incomplete but verifiable contract works better than using a more comprehensive but subjective one.

Suggested Citation

  • Arya Gaduh & Menno Pradhan & Jan Priebe & Dewi Susanti, 2022. "Does Performance Pay Enhance Social Accountability? Evidence from Remote Schools in Indonesia," NBER Working Papers 30758, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:30758
    Note: DEV ED
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    More about this item

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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