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Incentive Design in Education: An Empirical Analysis

Hugh Macartney, Robert McMillan and Uros Petronijevic

No 21835, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: While incentive schemes to elicit greater effort in organizations are widespread, the incentive strength-effort mapping is difficult to ascertain in practice, hindering incentive design. We propose a new semi-parametric method for uncovering this relationship in an education context, using exogenous incentive variation and rich administrative data. The estimated effort response forms the basis of a counterfactual approach tracing the effects of various accountability systems on the full distribution of scores. We show higher average performance comes with greater score dispersion for a given accountability scheme, and that incentive designs not yet enacted can improve performance further, relevant to education reform.

JEL-codes: D82 I21 J33 M52 (search for similar items in EconPapers)
Date: 2015-12
New Economics Papers: this item is included in nep-edu and nep-hrm
Note: CH ED LS PE
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Citations: View citations in EconPapers (2)

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