Working Paper: NBER ID: w16333
Authors: Eric P. Bettinger
Abstract: Policymakers and academics are increasingly interested in applying financial incentives to individuals in education. This paper presents evidence from a pay for performance program taking place in Coshocton, Ohio. Since 2004, Coshocton has provided cash payments to students in grades three through six for successful completion of their standardized testing. Coshocton determined eligibility for the program using randomization, and using this randomization, this paper identifies the effects of the program on students' academic behavior. We find that math scores improved about 0.15 standard deviations but that reading, social science, and science test scores did not improve.
Keywords: financial incentives; education; student achievement; randomized trial
JEL Codes: I21; I20; I21
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Financial incentives program (J33) | No significant improvement in reading scores (I24) |
| Financial incentives program (J33) | No significant improvement in social science scores (I24) |
| Financial incentives program (J33) | No significant improvement in science scores (I24) |
| Financial incentives program (J33) | No significant decrease in intrinsic motivation (D29) |
| Financial incentives program (J33) | Improvement in math scores (C12) |