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The Effect of Financial Rewards on Students' Achievement: Evidence from a Randomized Experiment

Edwin Leuven (), Hessel Oosterbeek () and Bas van der Klaauw ()

Journal of the European Economic Association, 2010, vol. 8, issue 6, 1243-1265

Abstract: This paper reports on a randomized field experiment in which first-year university students could earn financial rewards for passing all first-year requirements within one year. Financial incentives turn out to have positive effects on achievement of high-ability students, whereas they have a negative impact on achievement of low-ability students. After three years these effects have increased, suggesting dynamic spillovers. The negative effects for less-able students are consistent with results from psychology and behavioral economics showing that external rewards may be detrimental for intrinsic motivation. (JEL: I21, I22, J24) (c) 2010 by the European Economic Association.

JEL-codes: I21 I22 J24 (search for similar items in EconPapers)
Date: 2010
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Working Paper: The effect of financial rewards on students' achievement: Evidence from a randomized experiment (2006) Downloads
Working Paper: The e ect of financial rewards on students achievement: Evidence from a randomized experiment (2004) Downloads
Working Paper: The Effect of Financial Rewards on Students' Achievements: Evidence from a Randomized Experiment (2003) Downloads
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