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Teacher Performance Incentives and Student Outcomes

  • Randall Eberts
  • Kevin Hollenbeck
  • Joe Stone

Although merit pay systems have been established in many school districts across the United States, little empirical evidence exists concerning their influence on student achievement. This paper reviews that evidence and presents case study evidence from a county where one high school piloted a merit pay system to reward student retention while another comparable high school maintained a traditional compensation system. A difference-in-differences analysis implies that merit pay increased retention, had no effect on grade point averages, reduced average daily attendance rates, and increased the percentage of students who failed.

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Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 37 (2002)
Issue (Month): 4 ()
Pages: 913-927

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Handle: RePEc:uwp:jhriss:v:37:y:2002:i:4:p:913-927
Contact details of provider: Web page: http://jhr.uwpress.org/

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  1. Eberts, Randall W & Stone, Joe A, 1986. "Teacher Unions and the Cost of Public Education," Economic Inquiry, Western Economic Association International, vol. 24(4), pages 631-43, October.
  2. Eberts, Randall W & Stone, Joe A, 1991. "Unionization and Cost of Production: Compensation, Productivity, and Factor-Use Effects," Journal of Labor Economics, University of Chicago Press, vol. 9(2), pages 171-85, April.
  3. Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March.
  4. Hoxby, Caroline Minter, 1996. "How Teachers' Unions Affect Education Production," The Quarterly Journal of Economics, MIT Press, vol. 111(3), pages 671-718, August.
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