• Publications
    • Essay
    • Case Study
    • Policy Study
    • Report
    • Testimony
    • Other
    • Newsletter
  • Blog
    • Daily Blog
    • Podcasts and Radio
    • Video
    • Infographics
    • Commentary / Op-Eds
    • Events
  • Events
  • Donate
  • About
    • Our Team
    • Show-Me Institute Board of Directors
    • Fellows and Scholars
    • Our Authors
    • Jobs
  • Contact
  • Explore Topics
    • Education
      • Accountability
      • Education Finance
      • Performance
      • School Choice
    • Health Care
      • Free-Market Reform
      • Medicaid
    • Corporate Welfare
      • Special Taxing Districts
      • Subsidies
      • Tax Credits
    • Labor
      • Government Unions
      • Public Pensions
    • State and Local Government
      • Budget and Spending
      • Courts
      • Criminal Justice
      • Municipal Policy
      • Property Rights
      • Transparency
      • Transportation
    • Economy
      • Business Climate
      • Energy
      • Minimum Wage
      • Privatization
      • Regulation
      • Taxes
      • Welfare
      • Workforce
Show Me InstituteShow Me Institute
Show Me InstituteShow Me Institute
Support the Show-Me Institute
  • Publications
    • Essay
    • Case Study
    • Policy Study
    • Report
    • Testimony
    • Other
    • Newsletter
  • Blog
    • Daily Blog
    • Podcasts and Radio
    • Video
    • Infographics
    • Commentary / Op-Eds
    • Events
  • Events
  • Donate
  • About
    • Our Team
    • Show-Me Institute Board of Directors
    • Fellows and Scholars
    • Our Authors
    • Jobs
  • Contact
  • Explore Topics
    • Education
      • Accountability
      • Education Finance
      • Performance
      • School Choice
    • Health Care
      • Free-Market Reform
      • Medicaid
    • Corporate Welfare
      • Special Taxing Districts
      • Subsidies
      • Tax Credits
    • Labor
      • Government Unions
      • Public Pensions
    • State and Local Government
      • Budget and Spending
      • Courts
      • Criminal Justice
      • Municipal Policy
      • Property Rights
      • Transparency
      • Transportation
    • Economy
      • Business Climate
      • Energy
      • Minimum Wage
      • Privatization
      • Regulation
      • Taxes
      • Welfare
      • Workforce
State and Local Government / Transparency

Incentives for Teachers: Empirical Evidence

By Sarah Brodsky on Sep 30, 2009

Alex Tabarrok is blogging about merit pay for teachers. An experiment in India found that incentives for teachers have a significant, positive effect on students’ test scores.

One of the most interesting results of this study is that incentives created a spillover effect. The teachers facing incentives were rewarded if students did well in two subjects, but the benefits weren’t limited to those subjects. This is good news, showing that a little incentive can go a long way. It also indicates that the test score gains reflect real learning rather than cheating, for if teachers were to artificially inflate scores in hopes of a reward, they would have no reason to distort scores in subjects that are unrelated to the incentive.

How do incentives for one subject improve test scores in a separate subject? It could be that students are taking the skills they learned in reading or math class and applying them in other areas; students who are well-prepared in math can go farther in science, for example.

The spillover could also be because of another effect of merit pay: Incentives change the way people view their profession. When teachers are paid according to a set schedule, they may feel, “I’m just like any other teacher with the same amount of experience. We all do the same work, and we earn the same amount. I don’t need to try to be exceptional.”

But when teachers are rewarded for student achievement, they think, “My students’ success depends on my individual effort and creativity. I don’t have to wait years for a pay raise; I can get one immediately if I bring achievement up far enough. We earn bonuses because outstanding teachers are valuable, and I want to be outstanding.” This attitude can motivate teachers across all subjects, not just in the areas linked to a monetary incentive.

For more about why I like merit pay for teachers, see this recent post.

  • Share
  • Tweet
  • Share
  • Email
  • Print
About the author

Sarah Brodsky

More about this author >
    Footer Logo
    Support the Show-Me-Institute
    Showmeinstitute.org is brought to you by Show-Me Institute and Show-Me Opportunity.
    • Publications
    • Blog
    • Events
    • Donate
    • About
    • Contact

    Reprint permission for Show-Me Institute publications and commentaries is hereby granted, provided that proper credit is given to the author. We request, but do not require, that those who reprint our material notify us of publication for our records: [email protected]

    Mission Statement
    Advancing liberty with responsibility by promoting market solutions for Missouri public policy.

    © Copyright 2023 All Rights Reserved