Double for Nothing?
How does a large unconditional increase in salary affect the performance of incumbent employees in the public sector? This paper presents experimental evidence on this question in the context of a policy change in Indonesia that led to a permanent doubling of teachers' base salaries. The analysis uses a large-scale, randomized experiment across a representative sample of Indonesian schools that accelerated this pay increase for teachers in treated schools. The findings show that the large pay increase significantly improved teachers' satisfaction with their income, reduced the incidence of teachers holding outside jobs, and reduced self-reported financial stress. Nevertheless, after two and three years, the increase in pay led to no improvement in student learning outcomes. The effects are precisely estimated, making it possible to rule out even modest positive impacts on test scores. The results suggest that unconditional pay increases are unlikely to be an effective policy option for improving the effort and productivity of incumbent employees in public sector settings.
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Format: | Working Paper biblioteca |
Language: | English |
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World Bank, Washington, DC
2017-12
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Subjects: | EDUCATION POLICY, TEACHER WAGES, SERVICE DELIVERY, TEACHER COMPENSATION, LABOR MARKET, |
Online Access: | http://documents.worldbank.org/curated/en/616961512396126770/Double-for-nothing-experimental-evidence-on-an-unconditional-teacher-salary-increase-in-Indonesia https://hdl.handle.net/10986/28987 |
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dig-okr-10986289872024-06-23T08:05:11Z Double for Nothing? Experimental Evidence on an Unconditional Teacher Salary Increase in Indonesia de Ree, Joppe Muralidharan, Karthik Pradhan, Menno Rogers, Halsey EDUCATION POLICY TEACHER WAGES SERVICE DELIVERY TEACHER COMPENSATION LABOR MARKET How does a large unconditional increase in salary affect the performance of incumbent employees in the public sector? This paper presents experimental evidence on this question in the context of a policy change in Indonesia that led to a permanent doubling of teachers' base salaries. The analysis uses a large-scale, randomized experiment across a representative sample of Indonesian schools that accelerated this pay increase for teachers in treated schools. The findings show that the large pay increase significantly improved teachers' satisfaction with their income, reduced the incidence of teachers holding outside jobs, and reduced self-reported financial stress. Nevertheless, after two and three years, the increase in pay led to no improvement in student learning outcomes. The effects are precisely estimated, making it possible to rule out even modest positive impacts on test scores. The results suggest that unconditional pay increases are unlikely to be an effective policy option for improving the effort and productivity of incumbent employees in public sector settings. 2017-12-07T21:24:21Z 2017-12-07T21:24:21Z 2017-12 Working Paper Document de travail Documento de trabajo http://documents.worldbank.org/curated/en/616961512396126770/Double-for-nothing-experimental-evidence-on-an-unconditional-teacher-salary-increase-in-Indonesia https://hdl.handle.net/10986/28987 English Policy Research Working Paper;No. 8264 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank application/pdf text/plain World Bank, Washington, DC |
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Biblioteca del Banco Mundial |
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EDUCATION POLICY TEACHER WAGES SERVICE DELIVERY TEACHER COMPENSATION LABOR MARKET EDUCATION POLICY TEACHER WAGES SERVICE DELIVERY TEACHER COMPENSATION LABOR MARKET |
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EDUCATION POLICY TEACHER WAGES SERVICE DELIVERY TEACHER COMPENSATION LABOR MARKET EDUCATION POLICY TEACHER WAGES SERVICE DELIVERY TEACHER COMPENSATION LABOR MARKET de Ree, Joppe Muralidharan, Karthik Pradhan, Menno Rogers, Halsey Double for Nothing? |
description |
How does a large unconditional increase
in salary affect the performance of incumbent employees in
the public sector? This paper presents experimental evidence
on this question in the context of a policy change in
Indonesia that led to a permanent doubling of teachers'
base salaries. The analysis uses a large-scale, randomized
experiment across a representative sample of Indonesian
schools that accelerated this pay increase for teachers in
treated schools. The findings show that the large pay
increase significantly improved teachers' satisfaction
with their income, reduced the incidence of teachers holding
outside jobs, and reduced self-reported financial stress.
Nevertheless, after two and three years, the increase in pay
led to no improvement in student learning outcomes. The
effects are precisely estimated, making it possible to rule
out even modest positive impacts on test scores. The results
suggest that unconditional pay increases are unlikely to be
an effective policy option for improving the effort and
productivity of incumbent employees in public sector settings. |
format |
Working Paper |
topic_facet |
EDUCATION POLICY TEACHER WAGES SERVICE DELIVERY TEACHER COMPENSATION LABOR MARKET |
author |
de Ree, Joppe Muralidharan, Karthik Pradhan, Menno Rogers, Halsey |
author_facet |
de Ree, Joppe Muralidharan, Karthik Pradhan, Menno Rogers, Halsey |
author_sort |
de Ree, Joppe |
title |
Double for Nothing? |
title_short |
Double for Nothing? |
title_full |
Double for Nothing? |
title_fullStr |
Double for Nothing? |
title_full_unstemmed |
Double for Nothing? |
title_sort |
double for nothing? |
publisher |
World Bank, Washington, DC |
publishDate |
2017-12 |
url |
http://documents.worldbank.org/curated/en/616961512396126770/Double-for-nothing-experimental-evidence-on-an-unconditional-teacher-salary-increase-in-Indonesia https://hdl.handle.net/10986/28987 |
work_keys_str_mv |
AT dereejoppe doublefornothing AT muralidharankarthik doublefornothing AT pradhanmenno doublefornothing AT rogershalsey doublefornothing AT dereejoppe experimentalevidenceonanunconditionalteachersalaryincreaseinindonesia AT muralidharankarthik experimentalevidenceonanunconditionalteachersalaryincreaseinindonesia AT pradhanmenno experimentalevidenceonanunconditionalteachersalaryincreaseinindonesia AT rogershalsey experimentalevidenceonanunconditionalteachersalaryincreaseinindonesia |
_version_ |
1802820935020969984 |