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Teacher Pay Reform and Productivity: Panel Data Evidence from Adoptions of Q-Comp in Minnesota

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  • Aaron J. Sojourner
  • Elton Mykerezi

Abstract

This paper studies the impacts of teacher pay-for-performance (P4P) reforms adopted with complementary human resource management (HRM) practices on student achievement and workforce flows. Since 2005, dozens of Minnesota school districts in cooperation with teachers’ unions implemented P4P as part of the state’s Quality Compensation program. Exploiting district variation in participation status and timing, we find evidence that P4P-centered HRM reform raises students’ achievement by 0.03 standard deviations. Falsification tests suggest that gains are causal. They appear to be driven especially by productivity increases among less-experienced teachers.

Suggested Citation

  • Aaron J. Sojourner & Elton Mykerezi, 2014. "Teacher Pay Reform and Productivity: Panel Data Evidence from Adoptions of Q-Comp in Minnesota," Journal of Human Resources, University of Wisconsin Press, vol. 49(4), pages 945-981.
    • Handle: RePEc:uwp:jhriss:v:49:y:2014:i:4:p:945-981
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    References listed on IDEAS

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    1. Raj Chetty & John N. Friedman & Nathaniel Hilger & Emmanuel Saez & Diane Whitmore Schanzenbach & Danny Yagan, 2011. "How Does Your Kindergarten Classroom Affect Your Earnings? Evidence from Project Star," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(4), pages 1593-1660.
    2. Bloom, Nicholas & Van Reenen, John, 2011. "Human Resource Management and Productivity," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 19, pages 1697-1767, Elsevier.
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    Cited by:

    1. Liebowitz, David D., 2021. "Teacher evaluation for accountability and growth: Should policy treat them as complements or substitutes?," Labour Economics, Elsevier, vol. 71(C).
    2. Timothy Bond & Kevin Mumford, 2017. "Teacher Performance Pay in the United States: Incidence and Adult Outcomes," Purdue University Economics Working Papers 1289, Purdue University, Department of Economics.
    3. Cédric Velghe & Anders McIlquham‐Schmidt & Pinar Celik & Martin Storme & Stan De Spiegelaere, 2024. "PROTOCOL: Employee work motivation, effort, and performance under a merit pay system: A systematic review," Campbell Systematic Reviews, John Wiley & Sons, vol. 20(4), December.
    4. Pedro S. Martins & João R. Ferreira, 2025. "Effects of individual incentive reforms in the public sector: the case of teachers," Public Choice, Springer, vol. 204(3), pages 457-481, September.
    5. Cassandra M.D. Hart & Aaron J. Sojourner, 2015. "Unionization and Productivity: Evidence from Charter Schools," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 54(3), pages 422-448, July.
    6. Hanley Chiang & Cecilia Speroni & Mariesa Herrmann & Kristin Hallgren & Paul Burkander & Alison Wellington, "undated". "Evaluation of the Teacher Incentive Fund: Final Report on Implementation and Impacts of Pay-for-Performance Across Four Years," Mathematica Policy Research Reports 568955b06a2a4b11b954dded8, Mathematica Policy Research.
    7. Mehta, Nirav, 2018. "The potential output gains from using optimal teacher incentives: An illustrative calibration of a hidden action model," Economics of Education Review, Elsevier, vol. 66(C), pages 67-72.
    8. Assaad, Ragui & Krafft, Caroline, 2015. "Is free basic education in Egypt a reality or a myth?," International Journal of Educational Development, Elsevier, vol. 45(C), pages 16-30.
    9. Clare Leaver & Owen Ozier & Pieter Serneels & Andrew Zeitlin, 2021. "Recruitment, Effort, and Retention Effects of Performance Contracts for Civil Servants: Experimental Evidence from Rwandan Primary Schools," American Economic Review, American Economic Association, vol. 111(7), pages 2213-2246, July.
    10. Brehm, Margaret & Imberman, Scott A. & Lovenheim, Michael F., 2017. "Achievement effects of individual performance incentives in a teacher merit pay tournament," Labour Economics, Elsevier, vol. 44(C), pages 133-150.
    11. Cohodes, Sarah R. & Eren, Ozkan & Ozturk, Orgul, 2026. "The long run effects of a teacher-focused school reform on student outcomes," Journal of Public Economics, Elsevier, vol. 253(C).
    12. Scott A. Imberman, 2015. "How effective are financial incentives for teachers?," World of Labour, LISER, pages 158-158, June.
    13. Alison Wellington & Hanley Chiang & Kristin Hallgren & Cecilia Speroni & Mariesa Herrmann & Paul Burkander, "undated". "Evaluation of the Teacher Incentive Fund: Implementation and Impacts of Pay-for-Performance After Three Years (Final Report)," Mathematica Policy Research Reports c01a81e283374843b1d4b39ce, Mathematica Policy Research.
    14. Hanley Chiang & Alison Wellington & Kristin Hallgren & Cecilia Speroni & Mariesa Herrmann & Steven Glazerman & Jill Constantine, "undated". "Evaluation of the Teacher Incentive Fund: Implementation and Impacts of Pay-for-Performance After Two Years," Mathematica Policy Research Reports 4f123c78ddb644079b88d2bb4, Mathematica Policy Research.

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