This chapter analyzes the design of incentive schemes in education while reviewing empirical studies that evaluate performance pay programs for educators. Several themes emerge. First, it is difficult to use one assessment system to create both educator performance metrics and measures of...

In low-income countries, educators often encourage weak primary students to drop out before reaching the end of primary school in order to avoid the negative attention they receive when their students perform poorly on primary leaving exams. We conducted an experiment in rural Uganda that sought...

We analyze an incentive pay scheme for educators that links educator compensation to the ranks of their students within appropriately defined comparison sets, and we show that under certain conditions this scheme induces teachers to allocate socially optimal levels of effort to all students....