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Cross-country evidence on teacher performance pay

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  • Woessmann, Ludger

Abstract

The general-equilibrium effects of performance-related teacher pay include long-term incentive and teacher-sorting mechanisms that usually elude experimental studies but are captured in cross-country comparisons. Combining country-level performance-pay measures with rich PISA-2003 international achievement micro data, this paper estimates student-level international education production functions. The use of teacher salary adjustments for outstanding performance is significantly associated with math, science, and reading achievement across countries. Scores in countries with performance-related pay are about one quarter standard deviations higher. Results avoid bias from within-country selection and are robust to continental fixed effects and to controlling for non-performance-based forms of teacher salary adjustments.

Suggested Citation

  • Woessmann, Ludger, 2011. "Cross-country evidence on teacher performance pay," Economics of Education Review, Elsevier, vol. 30(3), pages 404-418, June.
    • Handle: RePEc:eee:ecoedu:v:30:y:2011:i:3:p:404-418
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    1. Cross-Country Evidence on Teacher Performance Pay
      by Ariel Goldring in Free Market Mojo on 2010-08-23 20:09:18

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    Cited by:

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    2. Montalbo, Adrien, 2021. "Schools without a law: Primary education in France from the Revolution to the Guizot Law," Explorations in Economic History, Elsevier, vol. 79(C).
    3. Isaac Mbiti & Mauricio Romero & Youdi Schipper, 2023. "Designing Effective Teacher Performance Pay Programs: Experimental Evidence from Tanzania," The Economic Journal, Royal Economic Society, vol. 133(653), pages 1968-2000.
    4. Leigh, Andrew, 2012. "Teacher pay and teacher aptitude," Economics of Education Review, Elsevier, vol. 31(3), pages 41-53.
    5. 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.
    6. Atsushi Inoue & Ryuichi Tanaka, 2023. "Do teachers’ college majors affect students’ academic achievement in the sciences? A cross-subfields analysis with student-teacher fixed effects," Education Economics, Taylor & Francis Journals, vol. 31(5), pages 617-631, September.
    7. Yuki, Takako & Kameyama, Yuriko, 2014. "Challenges of Quality of Learning Outcomes for Countries with the Unfinished Agenda of Universal Primary Education and Gender Parity: The Case of Yemen," Working Papers 73, JICA Research Institute.
    8. Strauss, Jack, 2013. "The Economic Gains to Colorado of Amendment 66," MPRA Paper 49928, University Library of Munich, Germany.
    9. Braga, Michela & Checchi, Daniele & Scervini, Francesco & Garrouste, Christelle, 2020. "Selecting or rewarding teachers? International evidence from primary schools," Economics of Education Review, Elsevier, vol. 76(C).
    10. Felipe Barrera-Osorio & Darío Maldonado & Catherine Rodríguez, 2012. "Calidad de la Educación Básica y Media en Colombia: Diagnóstico y Propuestas," Documentos CEDE 10321, Universidad de los Andes, Facultad de Economía, CEDE.
    11. Natalia N. Karmaeva & Natalya V. Rodina, 2019. "The Implementation Of Performance-Related Pay In Collaboration With Employers: The Cases Of Two Russian Vocational Schools," HSE Working papers WP BRP 55/EDU/2019, National Research University Higher School of Economics.
    12. Eric A. Hanushek & Marc Piopiunik & Simon Wiederhold, 2014. "International Evidence on Teacher Cognitive Skills and Student Performance," CID Working Papers 63, Center for International Development at Harvard University.
    13. Goldhaber, Dan & Walch, Joe, 2012. "Strategic pay reform: A student outcomes-based evaluation of Denver's ProComp teacher pay initiative," Economics of Education Review, Elsevier, vol. 31(6), pages 1067-1083.
    14. Urieşi Sebastian, 2016. "Motivational effects of pay dispersion in pay for performance programs implemented in Romanian companies," Management & Marketing, Sciendo, vol. 11(2), pages 431-448, July.
    15. Todd Pugatch & Elizabeth Schroeder, 2018. "Teacher pay and student performance: evidence from the Gambian hardship allowance," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 10(2), pages 249-276, April.
    16. Sandra Nieto & Raul Ramos, 2014. "“Decomposition of Differences in PISA Results in Middle Income Countries”," IREA Working Papers 201408, University of Barcelona, Research Institute of Applied Economics, revised Mar 2014.
    17. Jian Zhang & Songqing Jin & Wei Si, 2020. "Incentivising teachers? Evaluating the incentive effect of China’s teacher performance‐based compensation reform in rural China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(1), pages 171-188, January.
    18. Sylvia, Sean & Luo, Renfu & Zhang, Linxiu & Shi, Yaojiang & Medina, Alexis & Rozelle, Scott, 2013. "Do you get what you pay for with school-based health programs? Evidence from a child nutrition experiment in rural China," Economics of Education Review, Elsevier, vol. 37(C), pages 1-12.
    19. Alejandro Ome V., 2012. "The Effects of Meritocracy for Teachers in Colombia," Informes de Investigación 10260, Fedesarrollo.
    20. Julia Varga, 2017. "The Effects of Policies Concerning Teachers’ Wages on Students’ Performance," Budapest Working Papers on the Labour Market 1701, Institute of Economics, Centre for Economic and Regional Studies.
    21. Piopiunik, Marc & Hanushek, Eric A. & Wiederhold, Simon, 2014. "The Impact of Teacher Skills on Student Performance across Countries," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100356, Verein für Socialpolitik / German Economic Association.
    22. Baranov, Igor N., 2012. "Quality of Secondary Education in Russia: Between Soviet Legacy and Challenges of Global Competitiveness," Working Papers 538, Graduate School of Management, St. Petersburg State University.
    23. Eric A. Hanushek & Marc Piopiunik & Simon Wiederhold, 2019. "The Value of Smarter Teachers: International Evidence on Teacher Cognitive Skills and Student Performance," Journal of Human Resources, University of Wisconsin Press, vol. 54(4), pages 857-899.
    24. Hanushek, Eric A., 2011. "The economic value of higher teacher quality," Economics of Education Review, Elsevier, vol. 30(3), pages 466-479, June.
    25. Burgess, Simon & Greaves, Ellen & Murphy, Richard, 2022. "Deregulating Teacher Labor Markets," Economics of Education Review, Elsevier, vol. 88(C).

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    More about this item

    Keywords

    Teacher performance pay Student achievement International PISA;

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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