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