Targeting the Wrong Teachers? Linking Measurement with Theory to Evaluate Teacher Incentive Schemes

Nirav Mehta

No 20171, University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers from University of Western Ontario, Centre for Human Capital and Productivity (CHCP)

Abstract: Measurement is crucial to the implementation of output-based incentive schemes. This paper uses models to study the performance of teacher quality estimators that enter teacher incentive schemes. I model an administrator tasked with (i) categorizing teachers with respect to a cutoff, (ii) retaining teachers in a hidden type environment, and (iii) compensating teachers in a hidden action environment. The preferred estimator would be the same in each model and depends on the relationship between teacher quality and class size. I use data from Los Angeles to show that simple fixed effects would almost always outperform more popular empirical Bayes.

Keywords: Teacher Incentive Pay; Teacher Quality (search for similar items in EconPapers)
Date: 2017
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Related works:
Journal Article: Measuring quality for use in incentive schemes: The case of “shrinkage” estimators (2019)
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