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Does Raising the Principal's Wage Improve the School's Outcomes? Quasi‐experimental Evidence from an Unusual Policy Experiment in Israel

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  • Victor Lavy

Abstract

This paper reports estimates of the causal effects of a 50 percent increase in the salary of headmasters of high schools in Israel. The results suggest that the program led to significant improvements in twelfth‐grade students' academic achievements. However, the effect was relatively modest, comprising increases of about 5–10 percent in the school mean matriculation rate, average score and number of subjects and credit units taken in matriculation programs. Based on these results and the lack of evidence regarding the effect of increasing teachers' salary, it seems that priority should be given to paying higher wages to school principals.

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  • Victor Lavy, 2008. "Does Raising the Principal's Wage Improve the School's Outcomes? Quasi‐experimental Evidence from an Unusual Policy Experiment in Israel," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(4), pages 639-662, December.
    • Handle: RePEc:bla:scandj:v:110:y:2008:i:4:p:639-662
    DOI: 10.1111/j.1467-9442.2008.00555.x
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    References listed on IDEAS

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    Cited by:

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    2. Wellens, Lore & Jegers, Marc, 2014. "Effective governance in nonprofit organizations: A literature based multiple stakeholder approach," European Management Journal, Elsevier, vol. 32(2), pages 223-243.
    3. Adriana Di Liberto & Fabiano Schivardi & Giovanni Sulis, 2015. "Managerial practices and student performance," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 30(84), pages 683-728.
    4. Coelli, Michael & Green, David A., 2012. "Leadership effects: school principals and student outcomes," Economics of Education Review, Elsevier, vol. 31(1), pages 92-109.
    5. Miller, Ashley, 2013. "Principal turnover and student achievement," Economics of Education Review, Elsevier, vol. 36(C), pages 60-72.
    6. Richard Cebula & Franklin Mixon & Mark Montez, 2015. "Teachers’ salaries and human capital, and their effects on academic performance: an institution-level analysis of Los Angeles County high schools," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 39(2), pages 347-356, April.

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