Cross-country evidence on teacher performance pay

Wößmann, Ludger (2011): Cross-country evidence on teacher performance pay. In: Economics of Education Review, Vol. 30, No. 3: pp. 404-418

Abstract

The general-equilibrium effects of performance-related teacher pay include long-term incentive and teacher-sorting mechanisms that usually elude experimental studies but are captured in cross-country comparisons. Combining country-level performance-pay measures with rich PISA-2003 international achievement micro data, this paper estimates student-level international education production functions. The use of teacher salary adjustments for outstanding performance is significantly associated with math, science, and reading achievement across countries. Scores in countries with performance-related pay are about one quarter standard deviations higher. Results avoid bias from within-country selection and are robust to continental fixed effects and to controlling for non-performance-based forms of teacher salary adjustments.

• Item Type: Journal article
• Faculties: Economics; Economics > Chairs > CESifo-Professorship for Empirical Innovation Economics
• Subjects: 300 Social sciences > 330 Economics
• Language: English