The Influence of Teacher Merit Pay on Student Performance
DOI:
https://doi.org/10.61173/g05n3r97Keywords:
Teacher merit pay, pay-for-performance, student academic performanceAbstract
Teacher merit pay refers to any system in which compensation is partly based on an evaluation of the employee’s job performance. This paper explores the efficacy and implications of teacher merit pay systems. Teacher merit pay has been implemented with varying degrees of success. The study examines cases where these systems increase teacher stress due to a heavy emphasis on performance metrics, potentially leading to higher turnover rates. Such turnover could improve student outcomes by removing poorly performing teachers. However, other implementations of merit pay that preserve baseline salaries and offer bonuses based on performance have shown no significant impact on student achievements, attendance, or graduation rates. This analysis emphasizes the complexities and mixed results concerning with merit pay systems and underscores the need for extended research duration, ideally over three years, to capture their comprehensive effects. The paper calls for future studies to address disruptive factors, such as socioeconomic influences and the pressures of teaching to standardized tests, to refine merit pay systems for genuinely enhancing educational quality.
References
[1] Leigh, A. (2013). The Economics and Politics of Teacher Merit Pay. CESifo Economic Studies, 59(1), 1-33.
[2] Jensen, N. C. (2012). Merit pay in Arkansas: An evaluation of the Cobra Pride incentive program in the Fountain Lake School District. University of Arkansas.
[3] Loyalka, P., Sylvia, S., Liu, C., Chu, J., & Shi, Y. (2019). Pay by Design: Teacher Performance Pay Design and the Distribution of Student Achievement. Journal of Labor Economics, 37(3), 621-662.
[4] Pham, L. D., Nguyen, T. D., & Springer, M. G. (2021). Teacher Merit Pay: A Meta-Analysis. American Educational Research Journal, 58(3), 527-566.
[5] Ryu, S., & Jinnai, Y. (2021). Effects of monetary incentives on teacher turnover: A longitudinal analysis. Public Personnel Management, 50(2), 205-231.
[6] Dee, T. S., & Wyckoff, J. (2015). Incentives, selection, and teacher performance: Evidence from IMPACT. Journal of Policy Analysis and Management, 34(2), 267-297.
[7] Yuan, K., Le, V.-N., McCaffrey, D. F., Marsh, J. A., Hamilton, L. S., Stecher, B. M., & Springer, M. G. (2013). Incentive Pay Programs Do Not Affect Teacher Motivation or Reported Practices: Results From Three Randomized Studies. Educational Evaluation and Policy Analysis, 35(1), 3-22.
[8] Springer, M. G., & Taylor, L. L. (2016). Designing Incentives for Public School Teachers: Evidence from a Texas Incentive Pay Program. Journal of Education Finance, 41(3),344-381.
[9] Springer, M. G., Ballou, D., Hamilton, L., Le, V.-N., Lockwood, J., McCaffrey, D. F., Pepper, M., & Stecher, B. M. (2011). Teacher Pay for Performance: Experimental Evidence from the Project on Incentives in Teaching (POINT). Society for Research on Educational Effectiveness.
[10] Yoon, K. S., Duncan, T., Lee, S. W. Y., Scarloss, B., & Shapley, K. L. (2007). Reviewing the evidence on how teacher professional development affects student achievement. Issues & answers. REL, 33, 1-62.
[11] McKinney, P. A. (2000). A study to assess the relationships among student achievement, teacher motivation, and incentive pay. Virginia Tech.
[12] Horne, J., Foley, V. P., & Flora, B. H. (2014). Race to the paycheck: Merit pay and theories of teacher motivation. Journal of Academic Administration in Higher Education, 10(1), 35-39.
[13] Fryer, R. G. (2013). Teacher incentives and student achievement: Evidence from New York City public schools. Journal of Labor Economics, 31(2), 373-407.
Downloads
Published
Issue
Section
License
Copyright (c) 2024 by the authors.

This work is licensed under a Creative Commons Attribution 4.0 International License.
