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Do Higher Salaries Yield Better Teachers and Better Student Outcomes?

Author

Listed:
  • Jose Maria Cabrera
  • Dinand Webbink

Abstract

We study the effects of a policy aimed at attracting experienced teachers in primary schools in disadvantaged neighborhoods in Uruguay. Teachers in these schools could earn higher salaries. Program eligibility was based on a poverty index with a cutoff rule. Estimates from regression discontinuity models show that the policy increased teacher experience. Overall, the effect on student outcomes was small. The program may have increased experience in ways that are not strongly associated with improved student outcomes. Consistent with this, we do find achievement gains for students in schools that saw a reduction in the share of very inexperienced teachers.

Suggested Citation

  • Jose Maria Cabrera & Dinand Webbink, 2020. "Do Higher Salaries Yield Better Teachers and Better Student Outcomes?," Journal of Human Resources, University of Wisconsin Press, vol. 55(4), pages 1222-1257.
    • Handle: RePEc:uwp:jhriss:v:55:y:2020:i:4:p:1222-1257
    Note: DOI: 10.3368/jhr.55.4.0717-8911R3
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    File URL: http://jhr.uwpress.org/cgi/reprint/55/4/1222
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    Citations

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    Cited by:

    1. David K. Evans & Fei Yuan & Deon Filmer, 2020. "Are Teachers in Africa Poorly Paid? Evidence from 15 Countries," Working Papers 538, Center for Global Development.
    2. Fleck, Lara & Somers, Melline & Stolp, Tom & Groot, Wim & van Merode, Frits & de Vries, Ralph, 2023. "The Effectiveness of Interventions to Increase Employment in Education and Healthcare: A Systematic Literature Review," Research Memorandum 010, Maastricht University, Graduate School of Business and Economics (GSBE).
    3. Lara Fleck & Melline Somers & Tom Stolp & Wim Groot & Frits Merode & Ralph Vries, 2025. "The Effectiveness of Interventions to Increase Employment in Education and Healthcare: A Systematic Literature Review," De Economist, Springer, vol. 173(1), pages 1-45, March.
    4. Matteo Bobba & Tim Ederer & Gianmarco León-Ciliotta & Christopher A. Neilson & Marco Nieddu, 2021. "Teacher compensation and structural inequality: Evidence from centralized teacher school choice in Perú," Economics Working Papers 1788, Department of Economics and Business, Universitat Pompeu Fabra.
    5. Somers, Melline & Stolp, Tom & Burato, Francesca & Groot, Wim & van Merode, Frits & Vooren, Melvin, 2024. "Increasing the working hours of nurses and teachers: Evidence from a discrete choice experiment," Research Memorandum 014, Maastricht University, Graduate School of Business and Economics (GSBE).
    6. Grönqvist, Erik & Hensvik, Lena & Thoresson, Anna, 2020. "Teacher career opportunities and school quality," Working Paper Series 2020:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    7. Elacqua, Gregory & Rodrigues, Mateus & Rosa, Leonardo, 2025. "Impact of Monetary Incentives on Teacher Decisions to Leave and Choose Schools: Evidence from a Policy Reform in SaÞo Paulo," IDB Publications (Working Papers) 13950, Inter-American Development Bank.
    8. Fleck, Lara & Somers, Melline & Stolp, Tom & Groot, Wim & Van Merode, F & de Vries, Ralph, 2023. "The Effectiveness of Interventions to Increase Employment in Education and Healthcare: A Systematic Literature Review," ROA Research Memorandum 003, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    9. Emma Duchini & Victor Lavy & Stephen Machin & Shqiponja Telhaj, 2025. "Personnel policy in public sector organizations: evidence from England's academy schools," CEP Discussion Papers dp2129, Centre for Economic Performance, LSE.
    10. Bedasso, Biniam & Mendez Acosta, Amina, 2025. "The teachers who leave: Teacher attrition in Burkina Faso," International Journal of Educational Development, Elsevier, vol. 113(C).
    11. Somers, Melline & Stolp, Tom & Burato, Francesca & van Merode, Frits & Vooren, Melvin, 2024. "Increasing the working hours of nurses and teachers: Evidence from a discrete choice experiment," ROA Research Memorandum 005E, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    12. Bucheli, Marisa & González, Cecilia, 2024. "Investment in human capital by socioeconomic status in Uruguay," The Journal of the Economics of Ageing, Elsevier, vol. 27(C).

    More about this item

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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