Does performance-based pay improve teaching?

This interesting analysis from PISA in Focus on teacher pay and kid performance reveals, once again, the complexity of education systems. Moreover, it reveals the importance of carefully parsing out data. The overall picture shows no relationship between average student performance in a country and the use of performance-based pay schemes. However, in countries where teacher pay is relatively low the data indicate that student performance tends to be better when performance-based pay systems are in place. Interestingly, if teachers are well paid the opposite is true.

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