The Potential Output Gains from Using Optimal Teacher Incentives: An Illustrative Calibration of a Hidden Action Model

Nirav Mehta

No 20178, 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: This note examines the potential output gains from the implementation of optimal teacher incentive pay schemes, by calibrating the Holmstrom and Milgrom (1987) hidden action model using data from Muralidharan and Sundararaman (2011), a teacher incentive pay experiment implemented in Andhra Pradesh, India. Findings suggest that the introduction of optimal individual incentive-pay schemes could result in very large increases in output, about six times the size of the (significant) results obtained in the experiment.

Keywords: Hidden Action; Empirical Contracts; Teacher Incentive Pay (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-hrm
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: The potential output gains from using optimal teacher incentives: An illustrative calibration of a hidden action model (2018)
Working Paper: The Potential Output Gains from Using Optimal Teacher Incentives: An Illustrative Calibration of a Hidden Action Model (2018)
Working Paper: The Potential Output Gains from Using Optimal Teacher Incentives: An Illustrative Calibration of a Hidden Action Model (2017)
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