Created by the U.S. Congress in 2006, the Teacher Incentive Fund (TIF) represents the first federal initiative targeted directly at state and district efforts to introduce performance measures into educator compensation. TIF responds to a growing body of evidence that existing pay structures do not respond to labor force realities or adequately…

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…