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ERIC Number: EJ933126
Record Type: Journal
Publication Date: 2011
Pages: 30
Abstractor: As Provided
ISBN: N/A
ISSN: ISSN-1557-3060
EISSN: N/A
Risk Aversion and Support for Merit Pay: Theory and Evidence from Minnesota's Q Comp Program
Nadler, Carl; Wiswall, Matthew
Education Finance and Policy, v6 n1 p75-104 Win 2011
Recent research attributes the lack of merit pay in teaching to the resistance of teachers. This article examines whether the structure of merit pay affects the types of teachers who support it. We develop a model of the relative utility teachers receive from merit pay versus the current fixed schedule of raises. We show that if teachers are risk averse, teachers with higher base salaries would be more likely to support a merit pay program that allows them to keep their current base salary and risk only future salary increases. We test the predictions of the model using data from a new merit pay program, the Minnesota Q Comp program, which requires the approval of the teachers in each school district. Consistent with the model's predictions, we find that districts with higher base salaries and a higher proportion of teachers with master's degrees are more likely to approve merit pay.
MIT Press. 55 Hayward Street, Cambridge, MA 02142. Tel: 617-253-2889; Fax: 617-253-1709; e-mail: journals-rights@mit.edu; Web site: http://www.mitpressjournals.org/loi/edfp
Publication Type: Journal Articles; Reports - Evaluative
Education Level: Elementary Secondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers - Location: Minnesota
Grant or Contract Numbers: N/A