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Tournament Incentives for Teachers: Evidence from a Scaled-Up Intervention in Chile

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  • Dante Contreras
  • Tomás Rau
Abstract
In this article we evaluate the effects of the introduction of group monetary incentives for teachers, based on a school performance tournament in Chile. This is particularly relevant to analyze since it is the only scaled-up incentive program for teachers in the world. We evaluate the tournament effect, that is, the effect of introducing the incentive scheme on all participant schools, both winning and losing. We compare public and private subsidized schools to private fee-paying schools following a matched difference in difference and using three different empirical approaches. We explore the heterogeneous impact of the treatment through the distribution of the probability of winning. The results indicate a positive and significant tournament effect especially for schools that are very likely to win, which we call "on the money."

Suggested Citation

  • Dante Contreras & Tomás Rau, 2012. "Tournament Incentives for Teachers: Evidence from a Scaled-Up Intervention in Chile," Economic Development and Cultural Change, University of Chicago Press, vol. 61(1), pages 219-246.
    • Handle: RePEc:ucp:ecdecc:doi:10.1086/666955
    DOI: 10.1086/666955
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    References listed on IDEAS

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    1. Dante Contreras & Paulina Sepúlveda & Sebastián Bustos, 2010. "When Schools Are the Ones that Choose: The Effects of Screening in Chile," Social Science Quarterly, Southwestern Social Science Association, vol. 91(5), pages 1349-1368, December.
    2. Bellei, Cristián, 2009. "Does lengthening the school day increase students' academic achievement? Results from a natural experiment in Chile," Economics of Education Review, Elsevier, vol. 28(5), pages 629-640, October.
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    2. Gajardo, Felipe & Grau, Nicolás, 2019. "Competition among schools and educational quality: Tension between various objectives of educational policy," International Journal of Educational Development, Elsevier, vol. 65(C), pages 123-133.
    3. Cáceres-Delpiano, Julio & Giolito, Eugenio & Castillo, Sebastián, 2018. "Early impacts of college aid," Economics of Education Review, Elsevier, vol. 63(C), pages 154-166.
    4. Alejandro J. Ganimian & Richard J. Murnane, 2014. "Improving Educational Outcomes in Developing Countries: Lessons from Rigorous Impact Evaluations," NBER Working Papers 20284, National Bureau of Economic Research, Inc.
    5. Isaac Mbiti & Karthik Muralidharan & Mauricio Romero & Youdi Schipper & Constantine Manda & Rakesh Rajani, 2019. "Inputs, Incentives, and Complementarities in Education: Experimental Evidence from Tanzania," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(3), pages 1627-1673.
    6. Isaac Mbiti & Mauricio Romero & Youdi Schipper, 2023. "Designing Effective Teacher Performance Pay Programs: Experimental Evidence from Tanzania," The Economic Journal, Royal Economic Society, vol. 133(653), pages 1968-2000.
    7. Cristina Bellés-Obrero & María Lombardi, 2020. "Teacher Performance Pay and Student Learning: Evidence from a Nationwide Program in Peru," Department of Economics Working Papers wp_gob_2020_04, Universidad Torcuato Di Tella.
    8. Baethge, Caroline & Fiedler, Marina, 2016. "Aligning mission preferences: Does self-selection foster performance in working groups?," Passauer Diskussionspapiere, Betriebswirtschaftliche Reihe B-18-16, University of Passau, Faculty of Business and Economics.
    9. Lockheed, Marlaine E., 2014. "Teacher opinions on performance incentives : evidence from the Kyrgyz Republic," Policy Research Working Paper Series 6752, The World Bank.
    10. Cristina Bellés-Obrero & María Lombardi, 2022. "Teacher Performance Pay and Student Learning: Evidence from a Nationwide Program in Peru," Economic Development and Cultural Change, University of Chicago Press, vol. 70(4), pages 1631-1669.
    11. World Bank, 2018. "World Development Report 2018 [Rapport sur le développement dans le monde 2018]," World Bank Publications - Books, The World Bank Group, number 28340.
    12. Barbara Bruns & Javier Luque, 2014. "Great Teachers : How to Raise Student Learning in Latin America and the Caribbean--Overview," World Bank Publications - Reports 19507, The World Bank Group.
    13. Cuesta, José Ignacio & González, Felipe & Larroulet Philippi, Cristian, 2020. "Distorted quality signals in school markets," Journal of Development Economics, Elsevier, vol. 147(C).
    14. Alejandra Mizala & Florencia Torche, 2017. "Means-Tested School Vouchers and Educational Achievement: Evidence from Chile’s Universal Voucher System," The ANNALS of the American Academy of Political and Social Science, , vol. 674(1), pages 163-183, November.
    15. Cáceres-Delpiano, Julio & Giolito, Eugenio, 2014. "The Impact of Age of Entry on Academic Progression," IZA Discussion Papers 8694, Institute of Labor Economics (IZA).
    16. Canales, Andrea & Maldonado, Luis, 2018. "Teacher quality and student achievement in Chile: Linking teachers' contribution and observable characteristics," International Journal of Educational Development, Elsevier, vol. 60(C), pages 33-50.
    17. Cáceres-Delpiano, Julio & Giolito, Eugenio, 2018. "Minimum Age Requirements and the Impact of School Choice," IZA Discussion Papers 11420, Institute of Labor Economics (IZA).
    18. Contreras, Dante & Elacqua, Gregory & Martinez, Matías & Miranda, Álvaro, 2016. "Bullying, identity and school performance: Evidence from Chile," International Journal of Educational Development, Elsevier, vol. 51(C), pages 147-162.

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