This study examines the incentive effects of North Carolina's practice of awarding performance bonuses on test score achievement on the state tests. Bonuses were awarded based solely on whether a school exceeds a threshold on a continuous performance metric. The study uses a sharp regression discontinuity design, an approach with strong internal…

This paper provides practical guidance for researchers who are designing and analyzing studies that randomize schools--which comprise three levels of clustering (students in classrooms in schools)--to measure intervention effects on student academic outcomes when information on the middle level (classrooms) is missing. This situation arises…