Teacher incentives
Abstract
Recent evidence suggests that teachers matter for student learning (OECD, 2005). Consequently, education systems around the world strive to recruit and retain high-quality teachers. To ensure qualified teachers get to the classroom (and remain there), salaries must be set accordingly. Because education is a labor-intensive endeavor, in many countries teacher salaries account for 60–95% of educational spending. The traditional way of paying teachers, however, using education- and seniority-based salary schedules is not designed to reward or encourage superior performance (Hanushek, 1996; Lavy, 2007; Mumane & Cohen, 1986). To tackle this problem, ...
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