Paying to Learn: The Effect of Financial Incentives on Elementary School Test Scores
Policymakers and academics are increasingly interested in applying financial incentives to individuals in education. This paper presents evidence from a pay-for-performance program taking place in Coshocton, Ohio. Since 2004, Coshocton has provided cash payments to students in grades 3 through 6 for successful completion of their standardized testing. Coshocton determined eligibility for the program using randomization. Using this randomization, this paper identifies the effects of the program on students' academic behavior. We find that math scores improved about 0.15 standard deviations but that reading, social science, and science test scores did not improve. © 2012 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.
Volume (Year): 94 (2012)
Issue (Month): 3 (August)
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- Joshua Angrist & Victor Lavy, 2009. "The Effects of High Stakes High School Achievement Awards: Evidence from a Randomized Trial," American Economic Review, American Economic Association, vol. 99(4), pages 1384-1414, September.
- Michael Kremer & Edward Miguel & Rebecca Thornton, 2009.
"Incentives to Learn,"
The Review of Economics and Statistics,
MIT Press, vol. 91(3), pages 437-456, August.
- Michael Kremer & Edward Miguel & Rebecca Thornton, 2004. "Incentives to Learn," NBER Working Papers 10971, National Bureau of Economic Research, Inc.
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- Michael Kremer & Edward Miguel & Rebecca Thornton, 2004. "Incentives to learn," Natural Field Experiments 00289, The Field Experiments Website.
- Kremer, Michael & Miguel, Edward & Thornton, Rebecca & Ozier, Owen, 2005. "Incentives to learn," Policy Research Working Paper Series 3546, The World Bank.
- Roland G. Fryer, Jr, 2010. "Financial Incentives and Student Achievement: Evidence from Randomized Trials," NBER Working Papers 15898, National Bureau of Economic Research, Inc. Full references (including those not matched with items on IDEAS)
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