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…