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Enhancing the Efficacy of Teacher Incentives through Loss Aversion: A Field Experiment
Open accessAbstract
Domestic attempts to use financial incentives for teachers to increase student achievement have been ineffective.In this paper, we demonstrate that exploiting the power of loss aversion-teachers are paid in advance and asked to give back the money if their students do not improve sufficiently-increases math test scores between 0.201 (0.076) and 0.398 (0.129) standard deviations.This is equivalent to increasing teacher quality by more than one standard deviation.A second treatment arm, identical to the loss aversion treatment but implemented in the standard fashion, yields smaller and statistically insignificant results.This suggests it is loss aversion, rather than other features of the design or population sampled, that leads to the stark differences between our findings and past research.
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Prospect Theory: An Analysis of Decision under Risk
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Teachers, Schools, and Academic Achievement
Rivkin, S. G., Hanushek, E. A., & Kain, J. F. (2005) · Econometrica · doi:10.1111/j.1468-0262.2005.00584.x · Cited by 4,501
The Impact of Individual Teachers on Student Achievement: Evidence from Panel Data
Rockoff, J. E. (2004) · American Economic Review · doi:10.1257/0002828041302244 · Cited by 2,432
Does Market Experience Eliminate Market Anomalies?
List, J. A. (2003) · The Quarterly Journal of Economics · doi:10.1162/00335530360535144 · Cited by 1,183
Self-citationCan You Recognize an Effective Teacher When You Recruit One?
Rockoff, J. E., Jacob, B. A., Kane, T. J., & Staiger, D. O. (2011) · Education Finance and Policy · doi:10.1162/edfp_a_00022 · Cited by 390
Cited by
Interpreting effect sizes of education interventions
Kraft, M. A. (2020) · Educational Researcher · doi:10.3102/0013189x20912798 · Cited by 1,281
Incentives, Selection, and Teacher Performance: Evidence from IMPACT
Dee, T. S., & Wyckoff, J. (2015) · Journal of Policy Analysis and Management · doi:10.1002/pam.21818 · Cited by 331
Reference-Dependent Preferences: Evidence from Marathon Runners
Allen, E. J., Dechow, P. M., Pope, D. G., & Wu, G. (2017) · Management Science · doi:10.1287/mnsc.2015.2417 · Cited by 324
Teacher Effects and Teacher-Related Policies
Jackson, C. K., Rockoff, J. E., & Staiger, D. O. (2014) · Annual Review of Economics · doi:10.1146/annurev-economics-080213-040845 · Cited by 300
Thirty Years of Prospect Theory in Economics: A Review and Assessment
Barberis, N. (2012) · SSRN Electronic Journal · doi:10.2139/ssrn.2177288 · Cited by 293
Metadata
- Authors
- Fryer, R., Levitt, S., List, J., & Sadoff, S.
- Venue
- National Bureau of Economic Research
- Publisher
- National Bureau of Economic Research
- Published
- 2012-07
- OpenAlex
- W1535305819
- Cited by
- 272
- References
- 6
- Type
- report
- Language
- en
- Open access
- green
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