The Effect of Teacher Contract Design on Student Performance

• In Event: Policy Issues Related to Teacher Quality and Teacher Mobility

Abstract

This study provides new insight into the design of teacher compensation policies by analyzing the experience of more than 200 school districts in Texas implementing locally-designed teacher incentive plans. While teacher incentive pay gains popularity as a high-stakes accountability policy, many scholars and practitioners question the efficacy of linking teacher pay to standardized test scores. This study analyzes outcomes of teacher bonuses to determine if cash incentives for teachers increase standardized tests scores, as well as the size and type of bonus most likely to increase scores. Regression analysis of this large data set is used to determine what type of bonus and what types of goals are most effective.

Author

• Jane Arnold Lincove, The University of Texas - Austin