A common criticism of merit-pay plans is that they fail to systematically target rewards to the most effective teachers. This study presents new evidence on this issue by evaluating data from Tennessee's Career Ladder Evaluation System and the Project STAR class-size experiment. Because the students and teachers participating in the experiment…

This article discusses what a Tennessee experiment tells about merit pay. Though the dramatic effects that teachers have on student achievement are indisputable, the exact ingredients of effective teaching are anything but settled. Questions about how to value experience, education, certification, and pedagogical skills---the big four of teacher…