Assistant Professor of Public Policy, Duke University
Incentivized Public-School Educators and Achievement in High-School and Beyond
We examine the introduction of performance-based monetary incentives in Brazilian public high-schools using linked administrative data sources. Group based bonus payments as large as 20% of annual salaries were assigned based on students’ performance in standardized tests and school-level retention rates. Robust quasi-experimental evidence indicates that the first year of the program alone produced improved performance in college admission test scores not attached to the payment scheme corresponding to one-tenth of a standard deviation. This moderate increase in performance had the potential to produce significant increase in access to better college education and to improve labor market outcomes. We find, however, very few indications that employability in the formal sector of the economy was higher eight years after high-school graduation among students exposed to incentivized teachers.