The relative effectiveness and costs of contract and regular teachers in India
While use of contract teachers provides a low-cost way to increase teacher numbers, it raises the quality concern that these less trained teachers may be less effective.� We estimate the causal contract-teacher effect on student achievement using school fixed effects and value-added models of the education production function, using Indian data.� We allow for both homogenous and heterogeneous treatment effects, to highlight the mechanisms through which the contract teacher effect works.� We also present school fixed effects teacher pay equations and predict achievement marks per Rupee spent on regular and contract teachers.� We find that despite being paid just a third of the salary of regular teachers with similar observed characteristics, contract teachers produce higher student learning.
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