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The Effects of Comprehensive Pay Reform on Achievement in Urban Schools

Author

Listed:
  • Eric A. Hanushek
  • Jin Luo
  • Andrew J. Morgan
  • Minh Nguyen
  • Ben Ost
  • Steven G. Rivkin
  • Ayman Shakeel

Abstract

Academic performance of disadvantaged students has been stubbornly hard to improve, particularly in urban schools. The Dallas Independent School District (Dallas ISD) addressed this problem in 2015 with a radical change in the structure of teacher compensation, basing it entirely on classroom effectiveness as determined by an evaluation system incorporating achievement growth, classroom observations and student surveys. We evaluate this institutional change with synthetic control methods that compare math and reading achievement in Dallas ISD schools with achievement for schools in other high-poverty Texas districts. We find large and significant positive effects on math achievement that increase steadily over time. For reading, there is no clear evidence of improvement in Dallas ISD relative to the synthetic control. A mechanism analysis shows that changes in teacher composition account for a majority of the math achievement increase.

Suggested Citation

  • Eric A. Hanushek & Jin Luo & Andrew J. Morgan & Minh Nguyen & Ben Ost & Steven G. Rivkin & Ayman Shakeel, 2023. "The Effects of Comprehensive Pay Reform on Achievement in Urban Schools," NBER Working Papers 31073, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:31073
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    Cited by:

    1. Emma Duchini & Victor Lavy & Stephen Machin & Shqiponja Telhaj, 2025. "Personnel policy in public sector organizations: evidence from England's academy schools," CEP Discussion Papers dp2129, Centre for Economic Performance, LSE.

    More about this item

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I20 - Health, Education, and Welfare - - Education - - - General
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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