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Working paper 01/035 - Abstract

The Intricacies of the Relationship Between Pay and Performance for Teachers: Do teachers respond to Performance Related Pay schemes?

Simon Burgess, Bronwyn Croxson, Paul Gregg and Carol Propper

Performance related pay (PRP) has been introduced for teachers in the UK as part of a drive to improve the outcome of public service and teaching in particular. For the introduced individual PRP scheme to be effective, teachers must have an effect on pupil attainment, must respond to financial incentives, must respond to performance related pay and within this to individual PRP schemes. This review examines evidence on these issues, drawing in particular from the experience of the USA. We conclude that individual PRP schemes can result in small positive gains in pupil attainment, but that the current operation of the UK scheme is more akin to a general pay rise for eligible teachers than a PRP scheme.

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