More teachers stayed on the job and students’ scores improved modestly at Texas schools that offered performance pay, reports a study by researchers at Vanderbilt University, the University of Missouri and Rand Corp. Bigger bonuses — $3,000 and up — produced better results, “although a majority of districts chose to spread the money around to more teachers and give smaller payments,” notes the Dallas News.
The study cautioned, though, that achievement gains shown by merit pay schools were small and could have resulted in part from other initiatives at those schools. Student test scores are a primary factor in determining bonuses, a criterion that many teachers oppose.
The merit-pay plan strongly affected teacher retention: “The probability of turnover surged among teachers who did not receive a DATE award, while it fell sharply among teachers who did receive such an award,” the researchers said.