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Can Financial Incentives Help Disadvantaged Schools to Attract and Retain High‐Performing Teachers? Evidence from Chile

Author

Listed:
  • Gregory Elacqua
  • Diana Hincapie
  • Isabel Hincapie
  • Veronica Montalva
Abstract
Extensive sorting of high‐performing teachers into the most advantaged schools contributes to the wide socioeconomic achievement gaps in many countries. The Chilean Pedagogical Excellence Assignment (AEP) pays bonuses to high‐performing teachers that are larger if they work at a disadvantaged school. Using a sharp regression discontinuity based on the program's eligibility rules, we estimate how the award affects where high‐performing teachers choose to work. The bonus, equivalent to 16 percent of an average annual salary, increased retention of high‐performing teachers in disadvantaged schools by 17 to 21 percentage points. In contrast, those teachers in more advantaged schools seem to use the award as a quality signal to stay or move to relatively high‐achieving schools. While the program accomplished its goal of retaining high‐performing teachers already working at disadvantaged schools, it did not achieve the objective of attracting better teachers from more advantaged schools.

Suggested Citation

  • Gregory Elacqua & Diana Hincapie & Isabel Hincapie & Veronica Montalva, 2022. "Can Financial Incentives Help Disadvantaged Schools to Attract and Retain High‐Performing Teachers? Evidence from Chile," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 41(2), pages 603-631, March.
    • Handle: RePEc:wly:jpamgt:v:41:y:2022:i:2:p:603-631
    DOI: 10.1002/pam.22375
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    References listed on IDEAS

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    Cited by:

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    2. Christopher Neilson & Sebastian Gallegos & Franco Calle, 2019. "Screening and Recruiting Talent At Teacher Colleges Using Pre-College Academic Achievement," Working Papers 636, Princeton University, Department of Economics, Industrial Relations Section..
    3. Ajzenman, Nicolás & Elacqua, Gregory & Marotta, Luana & Westh Olsen, Anne Sofie, 2021. "Order Effects and Employment Decisions: Experimental Evidence from a Nationwide Program," IDB Publications (Working Papers) 11541, Inter-American Development Bank.
    4. Elacqua, Gregory & Gómez, Leidy & Krussig, Thomas & Marotta, Luana & Méndez, Carolina & Neilson, Christopher, 2022. "The Potential of Smart Matching Platforms in Teacher Assignment: The Case of Ecuador," IDB Publications (Working Papers) 12483, Inter-American Development Bank.

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    More about this item

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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