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Teacher Performance Incentives and Student Outcomes

Author

Listed:
  • Randall Eberts
  • Kevin Hollenbeck
  • Joe Stone

Abstract

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.

Suggested Citation

  • Randall Eberts & Kevin Hollenbeck & Joe Stone, 2002. "Teacher Performance Incentives and Student Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 37(4), pages 913-927.
    • Handle: RePEc:uwp:jhriss:v:37:y:2002:i:4:p:913-927
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    References listed on IDEAS

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    1. Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March.
    2. Caroline Minter Hoxby, 1996. "How Teachers' Unions Affect Education Production," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(3), pages 671-718.
    3. Dale Ballou & Michael Podgursky, 1996. "Teacher Pay and Teacher Quality," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number tptq.
    4. 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 171-185, April.
    5. 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 631-643, October.
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    More about this item

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining

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