Teacher Performance Incentives and Student Outcomes
This paper reviews the evidence on the effectiveness of individual merit pay systems for teachers on student achievement, and it presents new empirical results based on a system established within a collective bargaining environment. While many merit pay systems have been established in school districts across the U.S., very little empirical evidence concerning their influence on student achievement exists. A natural experiment arose in a county in which one high school piloted a merit pay system that rewarded student retention and student evaluations of teachers while another comparable high school maintained a traditional compensation system. A difference-in-differences analysis implies that this system had no effect on grade point averages, reduced the percentage of students who dropped out of courses, reduced average daily attendance, and increased the percentage of students who failed. The outcomes of this merit pay system illustrate the difficulty of instituting such a compensation system in schools. The goal of the system was to increase student retention. A student was considered to be retained in a class if the student was present during a randomly selected day of the last week of classes. The system "worked" by this measure because the school experienced a significant reduction in course noncompleters. However it is not clear that this measure was correlated with student achievement or even average attendance, and indeed, neither of these outcomes were improved.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
|Date of creation:||Aug 2000|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.upjohn.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hoxby, Caroline Minter, 1996. "How Teachers' Unions Affect Education Production," The Quarterly Journal of Economics, MIT Press, vol. 111(3), pages 671-718, August.
- Eberts, Randall W & Stone, Joe A, 1991.
"Unionization and Cost of Production: Compensation, Productivity, and Factor-Use Effects,"
Journal of Labor Economics,
University of Chicago Press, vol. 9(2), pages 171-85, April.
- Randall W. Eberts & Joe A. Stone, 1987. "Unionization and cost of production: compensation, productivity, and factor-use effects," Working Paper 8701, Federal Reserve Bank of Cleveland.
- Eberts, Randall W & Stone, Joe A, 1986. "Teacher Unions and the Cost of Public Education," Economic Inquiry, Western Economic Association International, vol. 24(4), pages 631-43, October.
- Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March.
When requesting a correction, please mention this item's handle: RePEc:upj:weupjo:00-65. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.