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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.

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File URL: http://www.nber.org/papers/w16877.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 16877.

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Date of creation: Mar 2011
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Publication status: published as Taylor, Eric S. and John H. Tyler. 2012. “The Effect of Evaluation on Teacher Performance.” American Economic Review (accepted and forthcoming, authors listed alphabetically.).
Handle: RePEc:nbr:nberwo:16877
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  1. Daniel Aaronson & Lisa Barrow & William Sander, 2002. "Teachers and student achievement in the Chicago public high schools," Working Paper Series WP-02-28, Federal Reserve Bank of Chicago.
  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. Jesse Rothstein, 2008. "Teacher Quality in Educational Production: Tracking, Decay, and Student Achievement," NBER Working Papers 14442, National Bureau of Economic Research, Inc.
  4. Chetty, Raj & Friedman, John Norton & Hilger, Nathanial & Saez, Emmanuel & Schanzenbach, Dianne Whitmore & Yagan, Danny, 2011. "How Does Your Kindergarten Classroom Affect Your Earnings? Evidence from Project Star," Scholarly Articles 9639983, Harvard Kennedy School of Government.
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