Do Financial Incentives Crowd Out Intrinsic Motivation to Perform on Standardized Tests?
John List,
Jeffrey Livingston and
Susanne Neckermann
Framed Field Experiments from The Field Experiments Website
Abstract:
In the face of worryingly low performance on standardized test, offering students financial incentives linked to academic performance has been proposed as a potentially cost-effective way to support improvement. However, a large literature across disciplines finds that extrinsic incentives, once removed, may crowd out intrinsic motivation on subsequent, similar tasks. We conduct a field experiment where students, parents, and tutors are offered incentives designed to encourage student preparation for a high-stakes state test. The incentives reward performance on a separate low-stakes assessment designed to measure the same skills as the high-stakes test. Performance on the high-stakes test, however, is not incentivized. We find substantial treatment effects on the incented tests but no effect on the non-incented test; if anything, the incentives result in worse performance on the non-incented test. We also find evidence supporting the conclusion that the incentives crowd out intrinsic motivation to perform well on the non-incented test, but this effect is only temporary. One year later, students who had been in the incentives treatments perform better than those in the control on the same non-incented test.
Date: 2018
New Economics Papers: this item is included in nep-cbe, nep-exp and nep-hrm
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Citations: View citations in EconPapers (12)
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Journal Article: Do financial incentives crowd out intrinsic motivation to perform on standardized tests? (2018) 
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Persistent link: https://EconPapers.repec.org/RePEc:feb:framed:00643
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