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The Effects of Performance-Based Teacher Pay on Student Achievement

  • Sally Hudson


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    I evaluate the effects on student achievement of the Teacher AdvancementProgram (TAP), a school-level intervention that offers teachers professional development resources and performance-based compensation. Because TAP typically targets low-performing schools, assignment to the intervention is nonrandom. I use synthetic control matching methods to identify appropriate comparison units. I then use a difference-in-differences model to estimate the effects of TAP on state achievement exam scores in reading and mathematics. I find that students in TAP schools outperform students in comparison schools by roughly 0.15 standard deviations in mathematics. I find smaller and less precisely estimated effects on reading achievement.

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    Paper provided by Stanford Institute for Economic Policy Research in its series Discussion Papers with number 09-023.

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    Date of creation: Jul 2010
    Date of revision:
    Handle: RePEc:sip:dpaper:09-023
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    1. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
    2. Fitzpatrick Maria D, 2008. "Starting School at Four: The Effect of Universal Pre-Kindergarten on Children's Academic Achievement," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-40, November.
    3. Duflo, Esther & Dupas, Pascaline & Kremer, Michael, 2008. "Peer Effects, Teacher Incentives, and the Impact of Tracking: Evidence from a Randomized Evaluation in Kenya," CEPR Discussion Papers 7043, C.E.P.R. Discussion Papers.
    4. Petra Moser, 2005. "How Do Patent Laws Influence Innovation? Evidence from Nineteenth-Century World's Fairs," American Economic Review, American Economic Association, vol. 95(4), pages 1214-1236, September.
    5. Victor Lavy, 2002. "Evaluating the Effect of Teachers' Group Performance Incentives on Pupil Achievement," Journal of Political Economy, University of Chicago Press, vol. 110(6), pages 1286-1317, December.
    6. Ladd, Helen F., 1999. "The Dallas school accountability and incentive program: an evaluation of its impacts on student outcomes," Economics of Education Review, Elsevier, vol. 18(1), pages 1-16, February.
    7. Karthik Muralidharan & Venkatesh Sundararaman, 2009. "Teacher Performance Pay: Experimental Evidence from India," NBER Working Papers 15323, National Bureau of Economic Research, Inc.
    8. Alan B. Krueger, 1997. "Experimental Estimates of Education Production Functions," NBER Working Papers 6051, National Bureau of Economic Research, Inc.
    9. 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.
    10. Steven Lehrer & Weili Ding, 2004. "Estimating Dynamic Treatment Effects from Project STAR," Econometric Society 2004 North American Summer Meetings 252, Econometric Society.
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