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The Long Run Effects of a Comprehensive Teacher Performance Pay Program on Student Outcomes

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Listed:
  • Sarah Cohodes
  • Ozkan Eren
  • Orgul Ozturk

Abstract

This paper examines the effects of a comprehensive performance pay program for teachers implemented in high-need schools on students’ longer-run educational, criminal justice, and economic self-sufficiency outcomes. Using linked administrative data from a Southern state, we leverage the quasi-randomness of the timing of program adoption across schools to identify causal effects of the school reform. The program improved educational attainment and reduced both criminal activity and dependence on government assistance in early adulthood. We find little scope for student sorting or changes in the composition of teacher workforce, and that program benefits far exceeded its costs. We propose mechanisms for observed long-run effects and provide evidence consistent with these explanations. Several robustness checks and placebo tests support our findings.

Suggested Citation

  • Sarah Cohodes & Ozkan Eren & Orgul Ozturk, 2023. "The Long Run Effects of a Comprehensive Teacher Performance Pay Program on Student Outcomes," NBER Working Papers 31056, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:31056
    Note: ED LS PE
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    More about this item

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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