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Cross-Country Evidence on Teacher Performance Pay

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  • Woessmann, Ludger

    () (Ifo Institute for Economic Research)

Abstract

The general-equilibrium effects of performance-related teacher pay include long-term incentive and teacher-sorting mechanisms that usually elude experimental studies but are captured in cross-country comparisons. Combining country-level performance-pay measures with rich PISA-2003 international achievement micro data, this paper estimates student-level international education production functions. The use of teacher salary adjustments for outstanding performance is significantly associated with math, science, and reading achievement across countries. Scores in countries with performance-related pay are about one quarter standard deviations higher. Results avoid bias from within-country selection and are robust to continental fixed effects and to controlling for non-performance-based forms of teacher salary adjustments.

Suggested Citation

  • Woessmann, Ludger, 2010. "Cross-Country Evidence on Teacher Performance Pay," IZA Discussion Papers 5101, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp5101
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    References listed on IDEAS

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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Cross-Country Evidence on Teacher Performance Pay
      by Ariel Goldring in Free Market Mojo on 2010-08-23 20:09:18

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    Cited by:

    1. Ludger Woessmann, 2016. "The Importance of School Systems: Evidence from International Differences in Student Achievement," Journal of Economic Perspectives, American Economic Association, vol. 30(3), pages 3-32, Summer.
    2. Sylvia, Sean & Luo, Renfu & Zhang, Linxiu & Shi, Yaojiang & Medina, Alexis & Rozelle, Scott, 2013. "Do you get what you pay for with school-based health programs? Evidence from a child nutrition experiment in rural China," Economics of Education Review, Elsevier, vol. 37(C), pages 1-12.
    3. Julia Varga, 2017. "The Effects of Policies Concerning Teachers’ Wages on Students’ Performance," Budapest Working Papers on the Labour Market 1701, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
    4. Felipe Barrera-Osorio & Dario Maldonado & Catherine Rodríguez, 2012. "Calidad de la educación básica y media en Colombia: diagnóstico y propuestas," DOCUMENTOS DE TRABAJO 010078, UNIVERSIDAD DEL ROSARIO.
    5. Piopiunik, Marc & Hanushek, Eric A. & Wiederhold, Simon, 2014. "The Impact of Teacher Skills on Student Performance across Countries," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100356, Verein für Socialpolitik / German Economic Association.
    6. Baranov, Igor N., 2012. "Quality of Secondary Education in Russia: Between Soviet Legacy and Challenges of Global Competitiveness," Working Papers 538, Graduate School of Management, St. Petersburg State University.
    7. Eric A. Hanushek & Marc Piopiunik & Simon Wiederhold, 2014. "The Value of Smarter Teachers: International Evidence on Teacher Cognitive Skills and Student Performance," CESifo Working Paper Series 5120, CESifo Group Munich.
    8. Hanushek, Eric A., 2011. "The economic value of higher teacher quality," Economics of Education Review, Elsevier, vol. 30(3), pages 466-479, June.
    9. Leigh, Andrew, 2012. "Teacher pay and teacher aptitude," Economics of Education Review, Elsevier, vol. 31(3), pages 41-53.
    10. Balch, Ryan & Springer, Matthew G., 2015. "Performance pay, test scores, and student learning objectives," Economics of Education Review, Elsevier, vol. 44(C), pages 114-125.
    11. Yuki, Takako & Kameyama, Yuriko, 2014. "Challenges of Quality of Learning Outcomes for Countries with the Unfinished Agenda of Universal Primary Education and Gender Parity: The Case of Yemen," Working Papers 73, JICA Research Institute.
    12. Strauss, Jack, 2013. "The Economic Gains to Colorado of Amendment 66," MPRA Paper 49928, University Library of Munich, Germany.
    13. Sandra Nieto & Raul Ramos, 2014. "“Decomposition of Differences in PISA Results in Middle Income Countries”," AQR Working Papers 201404, University of Barcelona, Regional Quantitative Analysis Group, revised Mar 2014.
    14. Pugatch, Todd & Schroeder, Elizabeth, 2014. "Teacher Pay and Student Performance: Evidence from the Gambian Hardship Allowance," IZA Discussion Papers 8621, Institute for the Study of Labor (IZA).
    15. Eric A. Hanushek & Marc Piopiunik & Simon Wiederhold, 2014. "International Evidence on Teacher Cognitive Skills and Student Performance," CID Working Papers 63, Center for International Development at Harvard University.
    16. Goldhaber, Dan & Walch, Joe, 2012. "Strategic pay reform: A student outcomes-based evaluation of Denver's ProComp teacher pay initiative," Economics of Education Review, Elsevier, vol. 31(6), pages 1067-1083.
    17. Urieşi Sebastian, 2016. "Motivational effects of pay dispersion in pay for performance programs implemented in Romanian companies," Management & Marketing, Sciendo, vol. 11(2), pages 431-448, July.

    More about this item

    Keywords

    international; teacher performance pay; PISA; student achievement;

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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