Incentives,Selection, and Teacher Performance: Evidence from IMPACT

Teachers in the United States are compensated largely on the basis of fixed schedules that reward experience and credentials. However, there is a growing interest in whether performance‐based incentives based on rigorous teacher evaluations can improve teacher retention and performance. The evidence available to date has been mixed at best. This study presents novel evidence on this topic based on IMPACT, the controversial teacher‐evaluation system introduced in the District of Columbia Public Schools by then‐Chancellor Michelle Rhee. IMPACT implemented uniquely high‐powered incentives linked to multiple measures of teacher performance (i.e., several structured observational measures as well as test performance). We present regression‐discontinuity (RD) estimates that compare the retention and performance outcomes among low‐performing teachers whose ratings placed them near the threshold that implied a strong dismissal threat. We also compare outcomes among high‐performing teachers whose rating placed them near a threshold that implied an unusually large financial incentive. Our RD results indicate that dismissal threats increased the voluntary attrition of low‐performing teachers by 11 percentage points (i.e., more than 50 percent) and improved the performance of teachers who remained by 0.27 of a teacher‐level standard deviation. We also find evidence that financial incentives further improved the performance of high‐performing teachers (effect size = 0.24).     

Teacher Skill Development: Evidence from Performance Ratings by Principals

We examine the dynamic nature of teacher skill development using panel data on principals’ subjective performance ratings of teachers. Past research on teacher productivity improvement has focused primarily on one important but narrow measure of performance: teachers’ value-added to student achievement on standardized tests. Unlike value-added, subjective performance ratings provide detailed information about specific skill dimensions and are available for teachers in non-tested grades and subjects. Using a within-teacher returns-to-experience framework, we find, on average, large and rapid improvements in teachers’ instructional practices throughout their first 10 years on the job as well as substantial differences in improvement rates across individual teachers. We also document that subjective performance ratings contain important information about teacher effectiveness. In the district we study, principals appear to differentiate teacher performance throughout the full distribution instead of just in the tails. Furthermore, prior performance ratings and gains in these ratings provide additional information about teachers’ ability to improve test scores that is not captured by prior value-added scores. Taken together, our study provides new insights on teacher performance improvement and variation in teacher development across instructional skills and individual teachers.     

The Productivity Costs of Inefficient Hiring Practices: Evidence From Late Teacher Hiring

We use matched employee–employer records from the teacher labor market to explore the effects of late teacher hiring on student achievement. Hiring teachers after the school year starts reduces student achievement by 0.042 SD in mathematics and 0.026 SD in reading. This reflects, in part, a temporary disruption effect in the first year. In mathematics, but not in reading, late‐hired teachers remain persistently less effective, evidence of negative selection in the teacher labor market. Late hiring concentrates in schools that disproportionately serve disadvantaged student populations, contributing to challenges in ensuring an equitable distribution of educational resources for all students.     

Gender Congruence and Work Effort in Manager–Employee Relationships

This article uses data on public school teachers and principals to examine whether teachers who share the gender of their principal work more overtime hours than teachers who do not. Findings show that gender congruence is associated with overtime hours for female teachers but not for male teachers. This result holds between schools and within schools: female teachers with female principals work more overtime hours than female teachers with male principals, and female teachers with female principals work more overtime hours than male teachers who work in the same school, for the same female principal. In light of multiple competing explanations for this finding, the author explores why gender congruence matters for female teachers but not for male teachers.

Practitioner Points

• Female teachers with female principals work more overtime hours than female teachers with male principals.
• Female teachers with female principals work more overtime hours than male teachers who work in the same schools, for the same female principals.
• Gender congruence is not associated with overtime hours among male teachers.
• Female teachers’ overtime hours are associated with female principals’ overtime hours, suggesting that female teachers emulate female principals’ work behavior.

     

Employee Empowerment,Employee Attitudes,and Performance: Testing a Causal Model

The last three decades have witnessed the spread of employee empowerment practices throughout the public and private sectors. A growing body of evidence suggests that employee empowerment can be used to improve job satisfaction, organizational commitment, innovativeness, and performance. Nearly all previous empirical studies have analyzed the direct effects of employee empowerment on these outcome variables without taking into account the mediating role of employee attitudes. This article contributes to the growing literature on employee empowerment by proposing and testing a causal model that estimates the direct effect of employee empowerment on performance as well as its indirect effects as mediated by job satisfaction and innovativeness. The empirical analysis relies on three years of data from the Federal Human Capital Survey/Federal Employee Viewpoint Survey and a structural equation modeling approach, including the use of lagged variables. The results support the hypothesized causal structure. Employee empowerment seems to have a direct effect on performance and indirect effects through its influence on job satisfaction and innovativeness, two key causal pathways by which empowerment practices influence behavioral outcomes.     

Strategic Involuntary Teacher Transfers and Teacher Performance: Examining Equity and Efficiency

Despite claims that school districts need flexibility in teacher assignment to allocate teachers more equitably across schools and improve district performance, the power to involuntarily transfer teachers across schools remains hotly contested. Little research has examined involuntary teacher transfer policies or their effects on schools, teachers, or students. This article uses administrative data from Miami‐Dade County Public Schools to investigate the implementation and effects of the district's involuntary transfer policy, including which schools transferred and received teachers, which teachers were transferred, what kinds of teachers replaced them in their former schools, and how their performance—as measured by their work absences and value‐added in math and reading—compared before and after the transfer. We find that, under the policy, principals in the lowest performing schools identified relatively low‐performing teachers for transfer who, based on observable characteristics, would have been unlikely to leave on their own. Consistent with an equity improvement, we find that involuntarily transferred teachers were systematically moved to higher performing schools and generally were outperformed by the teachers who replaced them. Efficiency impacts are mixed; although transferred teachers had nearly two fewer absences per year in their new positions, transferred teachers continued to have low value‐added in their new schools.     

Collaborative Networking,Environmental Shocks,and Organizational Performance: Evidence From Hurricane Rita

An organization's external environment, such as an environmental shock, is of great concern to public management scholars because it influences the behavior and ability of public managers to improve organizational performance. In this study, we examine how collaborative networking with the purpose of preparing for a natural disaster moderates the negative impact of Hurricane Rita on school performance in Texas. Our data consists of survey responses from Texas superintendents who were surveyed shortly after Hurricane Rita about their pre-hurricane disaster preparedness including collaborative networking behavior. Using this dataset, we use a collaborative networking measure that incorporates both the frequency of contact with various groups and the intensity of those interactions. Findings reveal that collaborative networking to prepare for natural disasters moderates the negative impact of a natural disaster on organizational performance.     

Performance Standards and Evaluation

The benefits of performance monitoring for public services are identified as greater transparency of objectives and accountability for results. This article considers recent experience in developing standards to evaluate efficiency and effectiveness of public services. In broad terms this is being done through performance information which is a much more encompassing concept than standards or indicators. Such information is an element of an accountability framework that provides greater management autonomy and flexibility and extends to the private sector which is increasingly providing, or involved with the provision of, public services.     

Public Housing Residence and College Performance: Evidence From the Nation's Largest Urban Public University

Despite clear implications for human capital accumulation, there has been little research on the postsecondary educational experiences of students living in public housing. While there is significant and growing research exploring outcomes for public housing tenants, even in the education sphere, little of this work focuses on postsecondary outcomes and what role, if any, public housing plays in human capital accumulation. Our case study, New York City, is home to both the nation's largest urban public university system and the largest public housing authority. In this work, we use matching techniques to identify and describe the residential characteristics of students at the City University of New York. We explore how students who live in public housing developments differ from their peers in terms of characteristics associated with success in college, including demographics, neighborhood poverty, and high school preparation. We use regression techniques to test the relation between public housing residence, neighborhood income, and two indicators of early college performance: successful completion of credits attempted and one-year retention. In a naive model (including only residence and high school characteristics), public housing residence is negatively associated with our outcomes of interest, but less so when we control for other factors, including neighborhood income. Specifically, for students pursuing an associate's degree, we find a negative relation between public housing residence and credit completion and a less pronounced negative relation with retention. We find no significant relation between public housing residence and either baccalaureate outcome.     

Understanding Employee Turnover in the Public Sector: Insights from Research on Teacher Mobility

Employee turnover is a key area for public administration research, but one about which there is much still to be learned. Insights from an extensive body of research on employee turnover in a specific area of the public sector—public education—contributes to the understanding of employee mobility in public organizations more generally. The authors present a conceptual framework for understanding employee turnover that is grounded in economic theories of labor supply and demand, which have formed the foundation of many studies of teacher turnover. The main findings of this body of work are documented, noting connections to the literature on public employee turnover, lessons that can be learned, and potential new areas for empirical inquiry for scholars of turnover in the public sector.     

Teacher Incentives and Student Achievement: Evidence from an Advancement Program

This paper examines the effects of a comprehensive performance pay program implemented in high‐need schools using administrative data from Louisiana. Exploiting the within‐student variation in the timing of implementation, we find a large and significant effect beginning with the second year of the program on math achievement. Similar but generally insignificant point estimates are observed in social studies. As for English Language Arts and science, there are no effects of the program. We provide evidence against changes in the composition of teacher workforce and postadoption student sorting as potential explanations for our results. We then show aggregate findings from a web‐survey that teachers may have altered their teaching practices following performance‐based compensation. Finally, under certain assumptions, we calculate the net present value of earnings impact to be close to a million dollars per school‐year for math.     

From Performance Budgeting to Performance Budget Management: Theory and Practice

This article examines the decades‐long practices of performance budgeting in different countries and their associated challenges from a multilayered institutional framework. Based on theory and lessons learned, the article recommends an array of strategies to address institutional and organizational barriers. It also proposes to reconceptualize performance budgeting as a performance budget management system and suggests how multiyear budget planning, financial risk assessment, policy planning, the departmental budget cycle, the program budget cycle, stakeholder engagement, regular spending reviews, and performance audits should be integrated more closely to address the long‐term fiscal challenges faced by many governments and to respond to the public pressure on agencies to do more with less.     

Housing Affordability and Health: Evidence From New York City

It is generally understood that households make tradeoffs between housing costs and other living expenses. In this article, we examine the relationship between health-related outcomes and housing-induced financial burdens for renters in one of the most expensive cities in the world, New York, New York. Drawing from the Housing Vacancy Survey for 2011, a representative survey conducted by the U.S. Census Bureau of more than 16,000 households in New York City, we estimate the effect of housing cost burden on the overall health of renters and the extent to which they have postponed various types of medical services for financial reasons. Results show that higher out-of-pocket rent burdens are associated with worse self-reported health conditions and a higher likelihood to postpone medical services for financial reasons. This relationship is particularly strong for those households with severe rent burdens. In addition, housing cost burden is equally or more important than other physical housing characteristics in explaining the variation in self-reported general health status and health care postponement. These findings are robust across specifications with different degrees of household, unit/building, and neighborhood controls, and among longstanding and newer renters. Our findings point to the importance of considering health-related outcomes when designing housing policies, and that housing subsidies should target both renters' out-of-pocket costs and place-based repair and maintenance.     

Employee Voluntary and Involuntary Turnover and Organizational Performance: Revisiting the Hypothesis from Classical Public Administration

ABSTRACT:

This article examines the effects of voluntary, involuntary, and absolute turnover rates on organizational performance. Adopting human capital and cost-benefit theories, this article posits that voluntary and involuntary turnover would have a linear negative and an inverted U-shaped relationship with organizational performance, respectively, and that an absolute turnover measure can prevent us from revealing the distinct effects of different types of turnover. Using four years of data from Florida school districts, primary findings suggest that involuntary turnover has an inverted U-shaped relationship with organizational performance, first positive and then negative, while the relationship between voluntary turnover and organizational performance remains inconclusive. The findings also suggest that absolute turnover rates can mask the complex and dissimilar impact that various types of turnover have on organizational performance.     

Fiscal Exchange and Tax Compliance: Evidence From a Field Experiment

Behavioral interventions appealing to taxpayers’ reciprocity often leave tax compliance unaffected. We provide evidence that a “fiscal exchange nudge” increased tax compliance in a setting where one might not expect it: crisis-ridden Argentina. In a randomized controlled trial with over 20,000 taxpayers, a tax bill visually celebrating realized public works benefiting children increased payment rates of tax delinquents by about 20 percent, or almost 40 percent when the bills were delivered in person. Without the appeal, the new bill design generated significantly fewer payments. Changes in the design of the tax bill also increased arrears cancellation. We estimate the ratio of marginal revenues to costs for the fiscal exchange bill to be 18. The factors we associate with the unexpectedly positive impacts are consistent with strengthening an affective response. We find persistent effects of the experiment two years later. The results suggest that communities have more scope to increase tax revenues through non-threatening interventions.     

Accuracy and Accountability in Reporting Local Government Budget Activities: Evidence From the Newsroom and From Newsmakers

The author surveyed newspaper managing editors and municipal finance directors about the effect of newspaper coverage on the accountability of local government budget activities and policies. Using the survey findings, he argues that newspapers are selective about what constitutes news, and that while newspapers receive adequate information from public officials, many reporters and editors lack the training to understand and interpret complex budget activities and policies. A content analysis of newspapers supports the survey findings and presents additional evidence. The result is a weakening of any assessment by the press. Overall, the results challenge the commonly accepted argument that press publicity provides an effective external control over the competence, responsiveness, and accountability of public officials. The article suggests that budget officials can take steps to improve accuracy in reporting and accountability by taking a more active approach with the press.     

Understanding Employee Motivation to Innovate: Evidence from Front Line Employees in United States Federal Agencies

In a period of ongoing public sector reform in the United States (US), federal government agencies have been pushed to find new ways of performing their public functions more effectively and efficiently. Frontline public sector employees are a particularly vital source of innovations in organisational function and form. This study seeks to identify factors that motivate front line employees in the US federal bureaucracy to engage in innovative behaviour. The empirical analysis is based on data from the 2006 Federal Human Capital Survey. The results show that a constellation of factors encourage bottom‐up innovation, including the expectancy of innovation being rewarded, employee training and development, employee empowerment and involvement in decision‐making, and high‐exchange dyadic relationships with supervisors.     

Financial Condition and Internal Control Deficiencies: Evidence From New York Counties

In recent years, significant attention has been given to measuring the financial condition of local governments, predicting when those governments will experience fiscal distress, and understanding how public managers navigate financial shortfalls. Researchers have given less focus, however, to understanding how financial condition affects other financial management practices—such as the administrative systems used to ensure financial accountability. This study uses a 19-year panel of county-level data from New York State to examine whether financial condition affects the likelihood of internal control deficiencies. The findings indicate that the incidence and severity of internal control deficiencies increase as financial condition deteriorates.