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ERIC Number: ED529941
Record Type: Non-Journal
Publication Date: 2010-Mar
Pages: 43
Abstractor: ERIC
Reference Count: 27
ISSN: ISSN-2045-6557
Individual Teacher Incentives, Student Achievement and Grade Inflation
Martins, Pedro S.
Centre for the Economics of Education (NJ1)
There is great interest in understanding the potential of teacher incentives to improve student achievement. In fact, teacher incentives, either individual or collective, may improve student achievement if they succeed in aligning the public or social goals with the goals of the teacher. However, an approach in which reward is based on outputs can also be fraught with difficulties: For instance, setting specific measurable outputs may lead to potentially dysfunctional behaviour such as teaching to test. Moreover, while individual incentives may disrupt collaborative work, collective incentives may also generate free riding and, in the end, little effect on performance. This paper sheds light into this question by examining the recent introduction of performance-related pay in all public schools in Portugal. The approach is based on a difference-in-differences analysis drawing on two complementary control groups. The structure of the paper is as follows: Section 2 describes the main characteristics of the education reform studied in the paper and discusses some of its theoretical implications. Section 3 presents the data used in the paper, a matched school-student panel data set; Section 4 describes the main results, while Section 5 presents the robustness analysis. Finally, Section 6 concludes. (Contains 4 figures, 9 tables and 14 footnotes.)
Centre for the Economics of Education. London School of Economics and Political Science, Houghton Street, London, WC2A 2AE, UK. Tel: +44-20-7955-7673; Fax: +44-20-7955-7595; e-mail:; Web site:
Publication Type: Reports - Descriptive
Education Level: Elementary Secondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: Centre for the Economics of Education
Identifiers - Location: Portugal