Merit Pay and Teacher Retention: Evidence From a Teacher Incentive Program in Arizona Public Schools

• In Event: Roundtable Session 11
  In Roundtable Session: Evaluating Professional Development, Teaching Practices, and Teacher Advancement

Abstract

Concerns about poor student performance in public schools have fueled discussion about improving access to high-quality teachers (Clotfelter, Ladd, & Vigdor, 2010; Hanushek, 2007) through improved recruitment and retention. In Arizona, where this study was conducted, teacher retention is a major issue statewide. In this study, we examined whether financial incentives in the form of performance-based bonuses helped keep effective teachers in high-needs schools. We first documented the patterns of teacher retention in Arizona high-needs public schools and linked them to teachers’ characteristics, and then used a regression discontinuity design to estimate the probability of teachers leaving their school. We found that teachers who received smaller bonuses based on their performance were more likely to leave their current schools.

Authors

• Margarita Pivovarova, Arizona State University - Tempe

• Tray Geiger, Arizona State University