Teacher Performance-Based Incentives and Learning Inequality

Abstract

This study evaluates the impacts of low-cost, performance-based incentives in Tanzanian secondary schools. Results from a two-phase randomized trial show that teacher incentives, when sustained for two years, led to persistent, modest average improvements in student achievement across different subjects. Randomly withdrawing incentives after a year did not lead to a “discouragement effect.” Incentives may have exacerbated learning inequality across schools. Increases in learning were concentrated among initially better-performing schools. We also find weak evidence of teacher incentives exacerbating learning inequality within initially better-performing schools. Finally, the study finds that incentivizing students without simultaneously incentivizing teachers did not produce learning gains.