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ERIC Number: ED451138
Record Type: RIE
Publication Date: 2000-Aug
Pages: 34
Abstractor: N/A
Teacher Performance Incentives and Student Outcomes. Upjohn Institute Staff Working Paper.
Eberts, Randall; Hollenbeck, Kevin; Stone, Joe
This paper reviews evidence of the impact of individual merit pay systems for teachers on student achievement, presenting new empirical results from a system established within a collective bargaining environment. While many merit pay systems exist nationwide, very little empirical evidence concerning their influence on student achievement exists. A natural experiment arose in one county where a high school piloted a merit pay system that rewarded student retention and student evaluations of teachers while a comparable high school maintained a traditional compensation system. A difference-in-differences analysis indicated that merit pay: had no effect on grade point averages and daily attendance rates; reduced the percentage of students who dropped out of courses; and increased the percentage of students who failed. The outcomes illustrate the difficulty of instituting individual merit pay in schools. The goal was to increase student retention. Students were considered retained if they were present during a randomly selected day of the last week of classes. The system worked by this measure because the school experienced a significant reduction in course noncompleters. However, it was not clear whether this measure was correlated with student achievement or even average attendance (neither of which was improved). (Contains 13 references.) (Author/SM)
Publications Department, W.E. Upjohn Institute, 300 South Westnedge Avenue, Kalamazoo, MI 49007-4686. Tel: 616-343-4330; Fax: 616-343-7310; Email:; Web site:
Publication Type: Reports - Research; Speeches/Meeting Papers
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: Upjohn (W.E.) Inst. for Employment Research, Kalamazoo, MI.
Grant or Contract Numbers: N/A
Note: Paper presented at the Annual Meeting of the National Academy of Sciences (Irvine, CA, December 17-18, 1999).