What Are We Learning from Impact Evaluation Studies about Teacher Incentives and Education Quality

The quality of teachers is a determinant to the quality of the education system. Despite the significant increase in resources invested in teacher incentives, there is little robust empirical evidence on their effectiveness, especially showing attribution. This paper examines the international literature using Impact Evaluation (IE) studies to see what lessons can be learned, focusing specifically on a key education input: teacher incentives as a policy to motivate teachers and improve education quality in middle- and low-income developing countries. The review shows there are limited number of IE studies on teacher incentives at the preschool, primary and secondary education levels applying robust experimental design and the results are mixed. When incentives are used properly they can have a positive impact on the quality of education.  However, certification itself is not enough as a way to improve the quality of the education system; it is critical to develop reforms explicitly geared towards quality. Finally, although incentives can reduce teacher absenteeism, they do not always improve the quality of education outcomes.