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dc.titleImpact of Monetary Incentives on Teacher Decisions to Leave and Choose Schools: Evidence from a Policy Reform in São Paulo
dc.contributor.authorElacqua, Gregory
dc.contributor.authorRodrigues, Mateus
dc.contributor.authorRosa, Leonardo
dc.contributor.orgunitEducation Division
dc.coverageBrazil
dc.coverageBrazil
dc.date.available2025-01-14T00:01:00
dc.date.issue2025-01-14T00:01:00
dc.description.abstractTeacher turnover is a major challenge for human resource management in schools, adversely affecting student learning. We examine the impact of a monetary incentive program introduced in 2022 in the city of Sao Paulo, Brazil, which aims to reduce teacher turnover by allocating wage premiums ranging from 5% to 25% of base salary based on schools turnover levels. Our results show a significant reduction in turnover: an average decrease of 18% across all schools, with an even more pronounced 30% reduction in schools offering higher incentives. Notably, the program also attracted new teachers to these higher-incentive schools. An analysis of teacher preferences similarly reveals a shift towards schools offering greater wage premiums. Furthermore, we find that schools offering high incentives experienced significant improvements in student test scores, with gains of 0.3-0.6 standard deviations in standardized assessments. The findings demonstrate the effectiveness of monetary incentives in mitigating teacher turnover and improving educational outcomes, providing evidence-based guidance for policymakers developing teacher retention strategies.
dc.format.extent27
dc.identifier.doihttp://dx.doi.org/10.18235/0013366
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Impact-of-Monetary-Incentives-on-Teacher-Decisions-to-Leave-and-Choose-Schools-Evidence-from-a-Policy-Reform-in-Sao-Paulo.pdf
dc.identifier.urlhttps://publications.iadb.org/publications/portuguese/document/Impacto-dos-incentivos-monetarios-nas-decisões-dos-professores-de-deixar-e-escolher-escolas-evidências-de-uma-reforma-politica-em-São-Paulo.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectEducational Institution
dc.subjectPolitical Reform
dc.subjectTeacher Turnover
dc.subjectMonetary Incentive
dc.subjectTeacher
dc.subjectEmployee Turnover
dc.subjectEducation
dc.subjectRating
dc.subjectLearning and Teaching Program
dc.subjectTest Score
dc.subjectWage
dc.subjectWage Premium
dc.subject.jelcodeI21 - Analysis of Education
dc.subject.jelcodeJ45 - Public Sector Labor Markets
dc.subject.jelcodeJ63 - Turnover • Vacancies • Layoffs
dc.subject.jelcodeM52 - Compensation and Compensation Methods and Their Effects
dc.subject.keywordsTeachers;financial incentives;teacher shortage;Teacher sorting;turnover rates;disadvantaged schools
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01674
idb.operationRG-E1892
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