Growing evidence suggests that teachers in developing countries often have weak or misaligned incentives for improving student outcomes. In response, policymakers and researchers have proposed performance pay as a way to improve student outcomes by tying concrete measures like achievement scores to teacher pay. While evidence from randomized…

China has made remarkable progress along the path of economic transformation over the past three decades. To continue its rapid growth in an economy with increasingly higher wages, China's key challenge is whether it can become competitive enough in quasi-skilled and skilled sectors so that more technologically advanced industries and service…