The concept of pay for performance for public school teachers is growing in popularity and use, and it has resurged to once again occupy a central role in education policy. Performance Incentives: Their Growing Impact on American K-12 Education offers the most up-to-date and complete analysis of this promising—yet still controversial—policy innovation.
Performance Incentives brings together an interdisciplinary team of experts, providing an unprecedented discussion and analysis of the pay-for-performance debate by
• Identifying the potential strengths and weaknesses of tying pay to student outcomes;
• Comparing different strategies for measuring teacher accomplishments;
• Addressing key conceptual and implemen - tation issues;
• Describing what teachers themselves think of merit pay;
• Examining recent examples in Arkansas, Florida, North Carolina, and Texas;
• Studying the overall impact on student achievement.
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"Matthew G. Springer is the director of the National Center on Performance Incentives and an assistant professor of public policy at Vanderbilt University's Peabody College. He is a coauthor of Modern Education Finance and Policy (2007) and a coeditor of Charter School Outcomes (2007) and Handbook of Research on School Choice (2009)."
Acknowledgments.................................................................................................................................................vii1 Rethinking Teacher Compensation Policies: Why Now, Why Again? Matthew G. Springer............................................................................1PART ONE Perspectives on Teacher Compensation Reform...........................................................................................................232 The Politics of Teacher Pay Reform Dan Goldhaber.............................................................................................................253 A Legal Perspective on Teacher Compensation Reform James E. Ryan.............................................................................................434 A Market-Based Perspective on Teacher Compensation Reform Michael Podgursky..................................................................................675 The Influence of Scholarship and Experience in Other Fields on Teacher Compensation Reform Richard Rothstein.................................................87PART TWO Incentive System Design and Measurement...............................................................................................................1116 Turning Student Test Scores into Teacher Compensation Systems Daniel F. McCaffrey, Bing Han, and J. R. Lockwood..............................................1137 Designing Incentive Systems for Schools Derek Neal...........................................................................................................1498 The Performance of Highly Effective Teachers in Different School Environments William L. Sanders, S. Paul Wright, and Warren E. Langevin.....................1719 Teacher-Designed Performance-Pay Plans in Texas Lori L. Taylor, Matthew G. Springer, and Mark Ehlert.........................................................191PART THREE Informing Teacher Incentive Policies................................................................................................................22510 Teacher Salary Bonuses in North Carolina Jacob L. Vigdor....................................................................................................22711 Teacher Effectiveness, Mobility, and Attrition in Florida Martin R. West and Matthew M. Chingos.............................................................25112 Student Outcomes and Teacher Productivity and Perceptions in Arkansas Marcus A. Winters, Gary W. Ritter, Jay P. Greene, and Ryan Marsh.....................27313 Teacher Incentives in the Developing World Paul Glewwe, Alaka Holla, and Michael Kremer.....................................................................295Contributors....................................................................................................................................................327Index...........................................................................................................................................................329
Matthew G. Springer
In recent years, teacher compensation reform has resurfaced as a strategy to enhance academic outcomes in the U.S. public elementary and secondary school system. A number of school districts, state education agencies, and national and federal initiatives presently fund the development and implementation of programs that remunerate teachers based on their performance or differentiate teacher pay in response to market conditions. These programs are predicated on the argument that prevailing compensation practices provide weak incentives for teachers to act in the best interest of their students and that inefficiencies arise from rigidities in current compensation policies.
Financial incentives also have been advocated as a viable tool for motivating teachers to higher levels of performance, enticing more effective teachers to join or remain in the teaching profession, and aligning teacher behaviors and interests with institutional goals. Nonetheless, a sturdy and influential base of individuals and organizations remains fundamentally opposed to modifying the single salary schedule. Opponents cite little evidence that pay-for-performance programs make schools better and further note that these programs render schools less effective by crowding out intrinsic rewards; they also say that the education system lacks appropriate measures for evaluating teacher performance.
Efforts to reconceptualize teacher compensation practices have garnered steady, if not increased, attention since the early- to mid-1980s, as illustrated in figure 1-1. The notable spike in 1983 coincides with release of the influential A Nation at Risk report and then-president Ronald Reagan's proclamation that "teachers should be paid and promoted on the basis of their merit and competence. Hard-earned tax dollars should encourage the best. They have no business rewarding incompetence and mediocrity." Also in 1983 a twenty-one-member congressional task force on merit pay established by Rep. Carl Perkins (D-Ky.) publicly supported and encouraged experimentation with performance-related pay reform. In fact, the U.S. Department of Education responded by allocating more than $2.5 million to fund seventy-one compensation reform efforts in thirty-seven states that year.
Perhaps surprisingly, research on pay-for-performance programs in the United States has tended to focus on short-run motivational effects, and this research is highly diverse in terms of methodology, target populations, and evaluated programs. In contrast to the applied natural and human sciences' practice of drawing causal inferences before policy decisionmaking, the education sector has tended not to rigorously evaluate policy innovations, particularly with respect to teacher pay. As such, the sector would benefit from deliberative assessment of past and present reform efforts as a means to differentiate fact from fiction. Now is a salient time to take stock of the teacher compensation reform movement.
The chapters in this volume focus primarily on two of the more prominent (and controversial) types of teacher compensation reform: awards based on predetermined tasks or outcomes related to teacher and student behaviors (that is, pay for performance), or both; and recruitment and retention incentives or incentives for teaching in a hard-to-staff school or subject (that is, market-based compensation reforms). This introductory chapter presents a brief history of teacher compensation policy reforms and then discusses theoretical and empirical arguments for and against these reforms. The following section summarizes relevant evaluations of pay-for-performance and market-based compensation reforms, paying particular attention to evidence from experimental and quasi-experimental study designs. This chapter concludes with a short summary of the chapters in this volume.
A Brief History of Teacher Compensation Policies and Reforms
As the U.S. economy shifted from an agricultural to industrial foundation in the late nineteenth and early twentieth centuries, so too did the role of elementary and secondary public education. The public education system was recast as a way to produce effective citizens, unite society, and prevent crime and poverty. This new purpose and focus,...
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