Paying to Learn: The Effect of Financial Incentives on Elementary School Test Scores

Eric Bettinger

The Review of Economics and Statistics, 2012, vol. 94, issue 3, 686-698

Abstract: Policymakers and academics are increasingly interested in applying financial incentives to individuals in education. This paper presents evidence from a pay-for-performance program taking place in Coshocton, Ohio. Since 2004, Coshocton has provided cash payments to students in grades 3 through 6 for successful completion of their standardized testing. Coshocton determined eligibility for the program using randomization. Using this randomization, this paper identifies the effects of the program on students' academic behavior. We find that math scores improved about 0.15 standard deviations but that reading, social science, and science test scores did not improve. © 2012 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Keywords: standardized testing; financial incentives; test scores; academic performance (search for similar items in EconPapers)
JEL-codes: I20 I21 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (86)

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Working Paper: Paying to Learn: The Effect of Financial Incentives on Elementary School Test Scores (2010)
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