We use a field experiment in Tanzania to compare the effectiveness on learning of two teacher performance pay systems. The first is a Pay for Percentile system (a rank-order tournament). The second rewards teachers based on multiple proficiency thresholds. Pay for Percentile can (under certain conditions) induce optimal effort among teachers, but…

Performance pay plans for teachers are a hot topic across the nation, so the country's largest program is bound to attract attention. But caution is advised. This is a state-sponsored program evaluation of Texas' most recent incentive pay program rather than research, and it suffers from two major constraints: data not collected and questions not…

Pay for performance is not a new idea, and reformers should not ignore the dismal record of merit pay over the past century. Initially adopted with a flourish of expectations during several waves of popularity in the past, every plan eventually fell into disuse. These plans proved to be unexpectedly costly and cumbersome to run. They often…

The District Awards for Teacher Excellence's (D.A.T.E.'s) first year of implementation in 2008-09 occurred at a time when Texas was operating several state-funded performance pay programs. The three-year Governor's Educator Excellence Grant (G.E.E.G.) program was coming to its expected completion, while the Texas Educator Excellence Grant…

Schools, districts, and states across the nation are changing the way educators are paid. Through the Teacher Incentive Fund (TIF) and other publicly and independently funded programs, educators at every level are designing and implementing modified pay and reward structures for teachers and principals. Sometimes these initiatives are called…

The Texas Educator Excellence Grant (TEEG) program was state-funded and provided annual grants to schools to design and implement performance pay plans during the 2006-07 to 2009-10 school year. TEEG was implemented each year (i.e., Cycle) in approximately 1,000 high poverty, high performing Texas public schools. Performance pay for teachers…

District Awards for Teacher Excellence (D.A.T.E.) is a state-funded program in Texas that provides grants to districts for the implementation of locally-designed performance pay plans. All districts in the state are eligible to receive grants, but participation is voluntary. As D.A.T.E. continues in its second year of operation with approximately…

Intense competitive pressure and the need for continual improvements have led to a burgeoning interest in and use of pay-for-performance programs. This paper explores the increased use of pay-for-performance, drawing examples from healthcare, education, and the government. Suggestions are made as to how best to implement pay-for-performance…

Tying teachers' pay to their classroom performance should, says Victor Lavy, improve the current educational system both by clarifying teaching goals and by attracting and retaining the most productive teachers. But implementing pay for performance poses many practical challenges, because measuring individual teachers' performance is difficult.…

A recent report published by the National Center on Performance Incentives (NCPI) presents findings from the second-year of a multi-year evaluation of the Texas Educator Excellence Grant (TEEG) program, a statewide educator incentive program that operated in Texas. As part of this larger study, evaluators examined how participation in the TEEG…

In "Holding Accountability to Account: How Scholarship and Experience in Other Fields Inform Exploration of Performance Incentives in Education"--a paper presented at the National Center on Performance Incentives research to policy conference in February--Richard Rothstein, a research associate at the Economic Policy Institute, argues educational…

Pay for performance is a popular public education reform, and millions of dollars are currently being targeted for pay for performance programs. These reforms are popular because economic and management theories suggest that well-designed incentive pay programs could improve teacher effectiveness. There is little evidence about the characteristics…

In U.S. K-12 public education, incentive pay for educators remains firmly fixed as a high-interest policy topic and has recently become a popular reform initiative in many school systems. The Teacher Incentive Fund (TIF), created in 2006 by the U.S. Department of Education, is at the forefront of this policy movement and has provided hundreds of…

The Governor's Educator Excellence Grant (GEEG) program was federally- and state-funded and provided three-year grants to schools to design and implement performance pay plans from the 2005-06 to 2007-08 school years. GEEG was implemented in 99 high poverty, high performing Texas public schools. This report builds on the previous GEEG evaluation…

Since the announcement in 1999 of a plan to tie teachers' salary increases to student achievement by Denver Public Schools, there has been a flood of nationwide policy activity around teacher compensation. This paper examines pay plans in Denver, Toledo, Minneapolis, and New York City, offering a snapshot of the changing landscape of teacher…