Instructors are a chief input into the higher education production process, yet we know very little about their role in promoting student success. This is in contrast to elementary and secondary schooling, for which ample evidence suggests teacher quality is an important determinant of student achievement. Whether colleges could improve student…

The aim of this paper is to provide an objective overview of the impact of teacher salaries on the educational achievements of students. It is often debated about teacher salaries and improvement or jeopardizing their standard, but educational consequences that may ensue as a result of these intentions are rarely addressed. Teacher's role in…

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 microdata, this paper estimates…

Teacher compensation schemes are often criticized for lacking a performance-based component. Proponents of merit pay argue that linking teacher salaries to student achievement will incentivize teachers to focus on raising student achievement and stimulate innovation across the school system as a whole. In this paper, we utilize a policy experiment…

This paper examines evidence from a performance-pay program implemented in five Little Rock, Arkansas elementary schools between 2004 and 2007. Using a differences-in-differences approach, the evidence shows that students whose teachers were eligible for performance pay made substantially larger test score gains in math, reading, and language than…

Since the 1996/97 school year, the state of North Carolina has awarded bonuses of up to $1,500 to teachers in schools that exhibit test score gains above certain thresholds. This article reviews the details of the bonus program, describes patterns of differences between schools that qualify for bonuses of differing amounts, and presents basic data…

In Appalachian Ohio, districts are 2.5 times more likely than other districts to earn "efficiency" ratings from the state education agency (SEA). District accountability performance is not adjusted for poverty or other structural threats, and affluent suburban districts are permitted to address the same standards as impoverished rural and urban…

This study examines whether changes in teacher compensation, specifically increases in salary, could improve student performance. Studies show that performance based award systems for teachers can increase their motivation to improve instruction. Data were collected from nine randomly chosen states. Each state's average teacher salary was compared…