Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/227223 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13696
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper reports on a two-tiered experiment designed to separately identify the selection and effort margins of pay-for-performance (P4P). At the recruitment stage, teacher labor markets were randomly assigned to a pay- for-percentile or fixed-wage contract. Once recruits were placed, an unexpected, incentive-compatible, school-level re-randomization was performed, so that some teachers who applied for a fixed-wage contract ended up being paid by P4P, and vice versa. By the second year of the study, the within-year effort effect of P4P was 0.16 standard deviations of pupil learning, with the total effect rising to 0.20 standard deviations after allowing for selection.
Subjects: 
pay-for-performance
selection
incentives
teachers
field experiment
JEL: 
C93
I21
J45
M52
O15
Document Type: 
Working Paper

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