Performance pay for teachers in India

This does not seem to have gotten anywhere near the importance it deserves in the Indian press. Alex Tabarrok at Marginal Revolution has a follow-up story on a large randomized experiment on the effectiveness of performance based bonuses for teachers in primary schools in India. The study was on a large number of government-run primary schools in Andhra Pradesh and the paper reports some outstanding results:

Students who completed their full five years of primary school under the program performed significantly better than those in control schools by 0.54 and 0.35 standard deviations in math and language tests respectively. These students also scored 0.52 and 0.3 standard deviations higher in science and social studies tests even though there were no incentives on these subjects.

That is absolutely brilliant! As Alex says, “Shout it from the rooftops!”


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