Incentive-Based Financing of Schools

April 2007

Eric Hanushek analyzes the incentives under which public school teachers and leaders work. He concludes that there are few rewards for producing high levels of student achievement and many rewards for work that does not promote student learning. He argues that performance-based accountability would build the link between funding and student learning. If adults' rewards depended heavily on the student learning outcomes they produced, educators at all levels would be forced to abandon ineffective methods and search for more effective ones.

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