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The Impact of Pay-for-Percentile Incentive on Low-Achieving Students in Rural China

Journal Article

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Economics of Education Review

April 2020

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In some accountability regimes, teachers pay more attention to higher achieving students at the expense of lower achieving students. The overall goal of this study is to examine, in this type of accountability regime, the impacts of a pay-for-percentile type scheme in which incentives exist for all students but which are larger for improving the achievement of lower achieving students. Analyzing data from a large-scale randomized experiment in rural China, we find that incentives improve average achievement by 0.10 SDs and the achievement of low-achieving students by 0.15 SDs. We find parallel changes in teacher behavior and curricular coverage. Taken together, the results demonstrate that incentive schemes can effectively address teacher neglect of low-achieving students.

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