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Monetary Incentives And Student Achievement In A Depressed Labour Market: Results From A Randomized Experiment

  • Maria De Paola

    ()

  • Vincenzo Scoppa

    ()

  • Rosanna Nisticò

    ()

    (Dipartimento di Economia e Statistica, Università della Calabria)

In this paper we carry out an evaluation of the effectiveness of monetary incentives in enhancing student performance using a randomized experiment involving undergraduate students enrolled at a Southern Italian University. Students participating at the experiment were assigned to three different groups: a high reward group, a low reward group and a control group. Rewards were assigned following a tournament rule to the 30 best performing students in each treated group. Findings suggest that financial rewards increase student performance both in terms of number of credits earned and grades obtained at exams. High ability students react strongly while the effect is null for low ability students. When the “intention-to-treat” effects are adjusted for non-participation using IV, it emerges a stronger impact of the treatment on student performance.

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File URL: http://www.ecostat.unical.it/RePEc/WorkingPapers/WP06_2010.pdf
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Paper provided by Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica) in its series Working Papers with number 201006.

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Length: 21 pages
Date of creation: Apr 2010
Date of revision:
Handle: RePEc:clb:wpaper:201006
Contact details of provider: Postal: Università della Calabria, Dipartimento di Economia, Statistica e Finanza, Ponte Pietro Bucci, Cubo 0/C, I-87036 Arcavacata di Rende, CS, Italy
Phone: +39 0984 492413
Fax: +39 0984 492421
Web page: http://www.unical.it/portale/strutture/dipartimenti_240/disesf/

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  16. Angrist, Joshua & Lang, Daniel W. & Oreopoulos, Philip, 2007. "Incentives and Services for College Achievement: Evidence from a Randomized Trial," IZA Discussion Papers 3134, Institute for the Study of Labor (IZA).
  17. M. De Paola & V. Scoppa, 2007. "Returns to skills, incentives to study and optimal educational standards," Journal of Economics, Springer, vol. 92(3), pages 229-262, December.
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