Report Finds Merit Pay Has Positive Effects

FAYETTEVILLE, Ark. — A new evaluation of a teacher pay-for-performance program in Little Rock finds that it produces significant gains in student performance on standardized tests and a more positive work environment for teachers.

The Achievement Challenge Pilot Project at Meadowcliff and Wakefield elementary schools offers teachers and staff bonuses that vary based on the magnitude of increases in student achievement.

Gary Ritter, who holds an endowed chair in education policy at the University of Arkansas, will present the findings of this study at a news conference at 2 p.m. Tuesday, Jan. 16 at the State Capitol, Old Supreme Court Meeting Room. The full report will be available Jan. 16 at http://www.uark.edu/ua/der/Research/merit_pay.html.

According to researchers in the UA department of education reform, these bonuses led to significantly greater learning gains than had been achieved by the same students prior to the program and by students at comparison schools. The introduction of merit bonuses produced an additional 3.5 normal curve equivalent points on a nationally normed math test. This gain in achievement after one year’s time is roughly equal to one-sixth of the test score gap between white and black students, on average, nationwide. That is, if the observed benefit of the merit pay program were to compound for six years, it would close the black-white test score gap.

“As Arkansas policy-makers consider ways to recruit, retain and reward effective public school teachers, they may well consider the responses from the teachers in these Little Rock elementary schools,” said Joshua Barnett, lead researcher of the study. “These teachers do reveal dissatisfaction with the status quo and a desire to be rewarded fairly for their work.”

In the merit pay program, teachers could earn a bonus worth as much as $11,000. In 2005-06, teachers and staff at Meadowcliff were awarded bonuses totaling $200,926, while those at Wakefield received $228,300 in performance bonuses. For the 2006-07 school year, the program was expanded to include three more elementary schools: Geyer Springs, Mabelvale and Romine. The program began at Meadowcliff in 2004-05, and Wakefield was added in 2005-06.

A survey of teachers at participating and comparison schools found a more positive work environment at schools where the merit bonuses were available. In addition, teachers at schools participating in the merit pay program were not more likely to report counterproductive competition among faculty. 

The study was led by Ritter, director of the Office for Education Policy in the department of education reform. Jay P. Greene, who holds the endowed chair in education reform, and graduate students Joshua Barnett and Marcus A. Winters also participated in the evaluation. The research team will continue to examine the program next year with a larger sample size of students and teachers to determine whether these initial benefits persist. The program is funded by the Little Rock School District, the Little Rock Public Education Foundation, the Walton Family Foundation, the Hussman Foundation and the Brown Family Foundation. Financial support for the evaluation was provided by the Walton Family Foundation.

“The Achievement Challenge Pilot Project merit pay system should be considered as one policy option to improve the status quo and compensate teachers, and then be subject to rigorous evaluation to continually test its effectiveness,” Ritter said.