Pay-for-performance is a popular public education reform, but there is little evidence about the characteristics of a well-designed incentive pay plan for teachers. Some of the literature suggests that effective incentive plans must offer relatively large awards to induce behavioral changes. On the other hand, the experimental economics literature…

Education policymakers have shown increased interest in incentive programs for teachers based on the outcomes of their students. This article examines a program in which bonuses were awarded to teams of middle school teachers based on their collective contribution to student test score gains. The study employs a randomized controlled trial to…

Paying teachers varying amounts on the basis of how well their students perform is an idea that has been winning increasing support, both in the United States and abroad, and many school systems have adopted some version of it. Proponents claim that linking teacher pay to student performance is a powerful way to encourage talented and highly…