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Teacher opinions on performance pay: Evidence from India

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  • Muralidharan, Karthik
  • Sundararaman, Venkatesh

Abstract

The practical viability of performance-based pay programs for teachers depends critically on the extent of support the idea will receive from teachers. We present evidence on teacher opinions with regard to performance-based pay from teacher interviews conducted in the context of an experimental evaluation of a program that provided performance-based bonuses to teachers in the Indian state of Andhra Pradesh. We report four main findings in this paper: (1) over 80% of teachers had a favorable opinion about the idea of linking a component of pay to measures of performance, (2) exposure to an actual incentive program increased teacher support for the idea, (3) teacher support declines with age, experience, training, and base pay, and (4) the extent of teachers' stated ex ante support for performance-linked pay (over a series of mean-preserving spreads of pay) is positively correlated with their ex post performance as measured by estimates of teacher value addition. This suggests that teachers are aware of their own effectiveness and that implementing a performance-linked pay program could not only have broad-based support among teachers but also attract more effective teachers into the teaching profession.

Suggested Citation

  • Muralidharan, Karthik & Sundararaman, Venkatesh, 2011. "Teacher opinions on performance pay: Evidence from India," Economics of Education Review, Elsevier, vol. 30(3), pages 394-403, June.
  • Handle: RePEc:eee:ecoedu:v:30:y:2011:i:3:p:394-403
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    References listed on IDEAS

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    Cited by:

    1. Singh, Prakarsh & Mitra, Sandip, 2017. "Incentives, information and malnutrition: Evidence from an experiment in India," European Economic Review, Elsevier, vol. 93(C), pages 24-46.
    2. Simon Burgess & Carol Propper & Marisa Ratto & Emma Tominey, 2004. "Incentives in the Public Sector: Evidence from a Government Agency," The Centre for Market and Public Organisation 04/103, Department of Economics, University of Bristol, UK.
    3. Heath, Rachel & Mushfiq Mobarak, A., 2015. "Manufacturing growth and the lives of Bangladeshi women," Journal of Development Economics, Elsevier, vol. 115(C), pages 1-15.
    4. Mikal Davis & Nick Ingwersen & Harounan Kazianga & Leigh Linden & Arif Mamun & Ali Protik & Matt Sloan, "undated". "Ten-Year Impacts of Burkina Faso's BRIGHT Program," Mathematica Policy Research Reports 2ecdd42bb503422b802ce20da, Mathematica Policy Research.
    5. Melody M. Chao & Rajeev Dehejia & Anirban Mukhopadhyay & Sujata Visaria, 2015. "Unintended Negative Consequences of Rewards for Student Attendance: Results from a Field Experiment in Indian Classrooms," HKUST IEMS Working Paper Series 2015-22, HKUST Institute for Emerging Market Studies, revised Apr 2015.
    6. Ramanath, Ramya, 2014. "Ethical implications of resource-limited evaluations: Lessons from an INGO in the eastern Democratic Republic of Congo," Evaluation and Program Planning, Elsevier, vol. 46(C), pages 25-37.
    7. Lant Pritchett, 2014. "The Risks to Education Systems from Design Mismatch and Global Isomorphism," CID Working Papers 277, Center for International Development at Harvard University.
    8. 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.
    9. Marta Favara & Irajen Appasamy & Marito H. Garcia, 2015. "Nigeria," World Bank Other Operational Studies 24454, The World Bank.
    10. Singh, Prakarsh, 2015. "Performance pay and information: Reducing child undernutrition in India," Journal of Economic Behavior & Organization, Elsevier, vol. 112(C), pages 141-163.
    11. Balch, Ryan & Springer, Matthew G., 2015. "Performance pay, test scores, and student learning objectives," Economics of Education Review, Elsevier, vol. 44(C), pages 114-125.
    12. Hai-Anh H. Dang & Elizabeth M. King, 2016. "Incentives and teacher effort," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 24(4), pages 621-660, October.

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