Lavy, Victor. (2009) Performance pay and teachers' effort, productivity, and grading ethics. American Economic Review, Vol.99 (No.5). pp. 1979-2011. ISSN 0002-8282

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Abstract

This paper presents evidence about the effect of individual monetary incentives on English and math teachers in Israel. Teachers were rewarded with cash bonuses for improving their students' performance in high-school matriculation exams. The main identification strategy is based on measurement error in the assignment to treatment variable that produced a randomized treatment sample. The incentives led to significant improvements in test taking rates, conditional pass rates, and mean test scores. Improvements were mediated through changes in teaching methods, enhanced after-school teaching, and increased responsiveness to students' needs. No evidence was found of manipulation of test scores by teachers.

Item Type:	Journal Article
Subjects:	H Social Sciences > HB Economic Theory L Education > L Education (General)
Divisions:	Faculty of Social Sciences > Economics
Journal or Publication Title:	American Economic Review
Publisher:	American Economic Association
ISSN:	0002-8282
Date:	December 2009
Volume:	Vol.99
Number:	No.5
Number of Pages:	33
Page Range:	pp. 1979-2011
Identification Number:	10.1257/aer.99.5.1979
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access
URI:	http://wrap.warwick.ac.uk/id/eprint/45552

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