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Teachers’ Salary Structure and Incentives in Chile


  • Alejandra Mizala
  • Pilar Romaguera



This paper analyses the characteristics of Chilean teachers and the institutional context of teachers’ labor market. Salary trends, from 1990 on, are analyzed to show the effects on the behavior of those applying to study pedagogy; in addition teachers’ salaries are compared to those of other similar workers. The paper also studies the incentives implicit in the current salary structure for teachers and offers a preliminary assessment of the impact of the National System of Performance Assessment (SNED) on student outcomes. The SNED is examined for two reasons: until recently, it was the sole monetary incentive associated with teacher evaluations; and similarly, it is the sole incentive that evaluates teachers’ performance according to students’ results on standardized tests. Finally, the paper presents the opinions of teachers and principals about performance evaluation and monetary incentive payments associated with them.

Suggested Citation

  • Alejandra Mizala & Pilar Romaguera, 2004. "Teachers’ Salary Structure and Incentives in Chile," Documentos de Trabajo 193, Centro de Economía Aplicada, Universidad de Chile.
  • Handle: RePEc:edj:ceauch:193

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    References listed on IDEAS

    1. Komenan, A. G. & Grootaert, C., 1990. "Pay differences between teachers and other occupations: Some empirical evidence from cote d'ivoire," Economics of Education Review, Elsevier, vol. 9(3), pages 209-217, September.
    2. Pablo González & Alejandra Mizala & Pilar Romaguera, 2002. "Recursos diferenciados a la educación subvencionada en Chile," Documentos de Trabajo 150, Centro de Economía Aplicada, Universidad de Chile.
    3. Andrea Tokman, 2002. "Evaluation of the P900 Program: A Targeted Education Program for Underperforming Schools," Working Papers Central Bank of Chile 170, Central Bank of Chile.
    4. James J. Heckman & Jeffrey A. Smith, 1995. "Assessing the Case for Social Experiments," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 85-110, Spring.
    5. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    6. George Jakubson, 1991. "Estimation and Testing of the Union Wage Effect Using Panel Data," Review of Economic Studies, Oxford University Press, vol. 58(5), pages 971-991.
    7. Gary T. Henry & Ross Rubenstein, 2002. "Paying for grades: Impact of merit-based financial aid on educational quality," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 21(1), pages 93-109.
    8. Psacharopoulos, George & Valenzuela, Jorge & Arends, Mary, 1996. "Teacher salaries in Latin America: A review," Economics of Education Review, Elsevier, vol. 15(4), pages 401-406, October.
    9. Lopez-Acevedo & Gladys, 2004. "Teachers'salaries and professional profile in Mexico," Policy Research Working Paper Series 3394, The World Bank.
    10. Claudia Piras & William D. Savedoff, 1998. "How Much do Teachers Earn?," IDB Publications (Working Papers) 6440, Inter-American Development Bank.
    11. Dale Ballou & Michael Podgursky, 1996. "Teacher Pay and Teacher Quality," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number tptq, November.
    12. Verdugo, Richard R. & Schneider, Jeffrey M., 1994. "Gender inequality in female-dominated occupation: The earnings of male and female teachers," Economics of Education Review, Elsevier, vol. 13(3), pages 251-264, September.
    13. Ladd, Helen F., 1999. "The Dallas school accountability and incentive program: an evaluation of its impacts on student outcomes," Economics of Education Review, Elsevier, vol. 18(1), pages 1-16, February.
    14. Grossman, Jean Baldwin, 1994. "Evaluating Social Policies: Principles and U.S. Experience," World Bank Research Observer, World Bank Group, vol. 9(2), pages 159-180, July.
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    Cited by:

    1. Martin Gustafsson & Firoz Patel, 2009. "Managing the teacher pay system: What the local and international data are telling us," Working Papers 26/2009, Stellenbosch University, Department of Economics.
    2. Gallego Francisco, 2013. "When Does Inter-School Competition Matter? Evidence from the Chilean “Voucher” System," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 13(2), pages 525-562, August.
    3. Emiliana Vegas & Alejandro Ganimian & Analia Jaimovich, 2012. "Learning from the Best : Improving Learning Through Effective Teacher Policies," World Bank Other Operational Studies 10057, The World Bank.

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