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The Effect of Evaluation on Performance: Evidence from Longitudinal Student Achievement Data of Mid-career Teachers


  • Eric S. Taylor
  • John H. Tyler


The effect of evaluation on employee performance is traditionally studied in the context of the principal-agent problem. Evaluation can, however, also be characterized as an investment in the evaluated employee's human capital. We study a sample of mid-career public school teachers where we can consider these two types of evaluation effect separately. Employee evaluation is a particularly salient topic in public schools where teacher effectiveness varies substantially and where teacher evaluation itself is increasingly a focus of public policy proposals. We find evidence that a quality classroom-observation-based evaluation and performance measures can improve mid-career teacher performance both during the period of evaluation, consistent with the traditional predictions; and in subsequent years, consistent with human capital investment. However the estimated improvements during evaluation are less precise. Additionally, the effects sizes represent a substantial gain in welfare given the program's costs.

Suggested Citation

  • Eric S. Taylor & John H. Tyler, 2011. "The Effect of Evaluation on Performance: Evidence from Longitudinal Student Achievement Data of Mid-career Teachers," NBER Working Papers 16877, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:16877
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    References listed on IDEAS

    1. Jesse Rothstein, 2010. "Teacher Quality in Educational Production: Tracking, Decay, and Student Achievement," The Quarterly Journal of Economics, Oxford University Press, vol. 125(1), pages 175-214.
    2. Steven Glazerman & Susanna Loeb & Dan Goldhaber & Douglas Staiger & Stephen Raudenbush & Grover Whitehurst, 2010. "Evaluating Teachers: The Important Role of Value-Added," Mathematica Policy Research Reports 503e125ed5244bb39586aafe1, Mathematica Policy Research.
    3. 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, Oxford University Press, vol. 126(4), pages 1593-1660.
    4. Daniel Aaronson & Lisa Barrow & William Sander, 2007. "Teachers and Student Achievement in the Chicago Public High Schools," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 95-135.
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    Cited by:

    1. Cory Koedel & Mark Ehlert & Eric Parsons & Michael Podgursky, 2012. "Selecting Growth Measures for School and Teacher Evaluations," Working Papers 1210, Department of Economics, University of Missouri.
    2. Cory Koedel & Eric Parsons & Michael Podgursky & Mark Ehlert, 2015. "Teacher Preparation Programs and Teacher Quality: Are There Real Differences Across Programs?," Education Finance and Policy, MIT Press, vol. 10(4), pages 508-534, October.
    3. Allison Atteberry & Susanna Loeb & James Wyckoff, 2013. "Do First Impressions Matter? Improvement in Early Career Teacher Effectiveness," NBER Working Papers 19096, National Bureau of Economic Research, Inc.
    4. Emiliana Vegas & Alejandro Ganimian, 2013. "Theory and Evidence on Teacher Policies in Developed and Developing Countries," IDB Publications (Working Papers) 4597, Inter-American Development Bank.
    5. Marc van der Steeg & Sander Gerritsen, 2013. "Teacher evaluations and pupil achievement: Evidence from classroom observations," CPB Discussion Paper 230, CPB Netherlands Bureau for Economic Policy Analysis.
    6. 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.

    More about this item

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M59 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Other


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