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Tournaments, gift exchanges, and the effect of monetary incentives for teachers: the case of Chile

Listed author(s):
  • Dante Contreras G.
  • Tomás Rau B.

In this paper we evaluate the introduction of monetary incentives for teachers, based on a school performance tournament in Chile. We evaluate the tournament effect, i.e. the effect of introducing the incentive scheme on all participant schools: winners and losers. We also evaluate the effect of winning the tournament on next period school performance that we call the gift-exchange effect. Matching and Regression Discontinuity techniques are used to identify both treatment effects. The results indicate a positive and significant tournament effect and a positive but nonsignificant gift-exchange effect.

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Paper provided by University of Chile, Department of Economics in its series Working Papers with number wp305.

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Date of creation: Dec 2009
Handle: RePEc:udc:wpaper:wp305
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