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

Nirav Mehta

EconStor Preprints from ZBW - Leibniz Information Centre for Economics

Abstract: This paper examines the potential output gains from the implementation of optimal teacher incentive pay schemes, by calibrating the H¨olmstrom 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: empirical contracts; teacher incentive schemes (search for similar items in EconPapers)
JEL-codes: I2 J3 J4 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-hrm and nep-ure
References: View references in EconPapers View complete reference list from CitEc
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 (2017)
Working Paper: The Potential Output Gains from Using Optimal Teacher Incentives: An Illustrative Calibration of a Hidden Action Model (2017)
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