Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/39851 
Year of Publication: 
2010
Series/Report no.: 
CESifo Working Paper No. 3151
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
The general-equilibrium effects of performance-related teacher pay include long-term incentive and teacher-sorting mechanisms that usually elude experimental studies but are captured in cross-country comparisons. Combining country-level performance-pay measures with rich PISA-2003 international achievement micro data, this paper estimates student-level international education production functions. The use of teacher salary adjustments for outstanding performance is significantly associated with math, science, and reading achievement across countries. Scores in countries with performance-related pay are about one quarter standard deviations higher. Results avoid bias from within-country selection and are robust to continental fixed effects and to controlling for non-performance-based forms of teacher salary adjustments.
Subjects: 
teacher performance pay
student achievement
international
PISA
JEL: 
I20
J33
Document Type: 
Working Paper
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