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Fryer, Roland G., Jr.; Levitt, Steven D.; List, John; Sadoff, Sally – National Bureau of Economic Research, 2012
Domestic attempts to use financial incentives for teachers to increase student achievement have been ineffective. In this paper, we demonstrate that exploiting the power of loss aversion--teachers are paid in advance and asked to give back the money if their students do not improve sufficiently--increases math test scores between 0.201 (0.076) and…
Descriptors: Teacher Effectiveness, Incentives, Academic Achievement, Mathematics Tests

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