Research Insights: Does Merit Pay among Public School Teachers Affect the Mobility of Teachers Out of Teaching or within the School System?
This paper analyzes the effect on teacher mobility of a program that rewards excellence in teaching practices in Chile. Successful applicants receive a 6 percent annual wage increase for up to 10 years and an award that publicly recognizes their excellence. The paper uses a regression discontinuity design to identify the causal effect of the public merit award. The program does not alter transitions out of teaching. The program does, however, increase the mobility of awardees within the school system. This is consistent with the program providing a credible public signal of teacher quality.