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Fall 2008
ISSN 0890-913X
Volume 24, Number 1

Paying Teachers for Advanced Degrees: Evidence on Student Performance from Georgia

Noel D. Campbell, University of Central Arkansas
Edward J. Lopez, San Jose State University
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TheJournalofPrivateEnterprise24(1),2008,33-49PayingTeachersforAdvancedDegrees:EvidenceonStudentPerformancefromGeorgiaNoelD.CampbellUniversityofCentralArkansasEdwardJ.LópezSanJoseStateUniversityandLibertyFund,Inc.AbstractGeorgiaofferssalaryincentivesforK-12educatorstoobtainpostbaccalaureatedegrees,intendingtoimprovestudentperformance.Inthispaper,weevaluatetheempiricalrelationshipbetweenadvanceddegreesearnedbyteachersandstudentpassratesonthestatehighschoolgraduationtest.Moreadvanceddegreesdonotsignificantlyimprovepassrates.Weconcludethedevilisinthedetails.Itiswellknownthateducationalperformanceistheproductoftheinteractionofmanyfactors,particularlyfamilyandsocio-economicvariables.Previousliteraturealsodrawsonlyaweakrelationshipbetweenteacherqualityandsalaryincentives.Thus,Georgiasexperiencesuggestsitisdifficulttodesigneffectivepolicythatdependsonindirectincentivestoperform.Certainpoliciesmayfailbecausetheyareill-conceived,orbecauseinterestgrouppressuresinterfereintheirplanningorexecution.Butsometimespoliciesfailbecausethereissimplyalimittogovernmentsabilitytosolveproblems.JELCodes:I220,I280Keywords:Stateeducationfinance,Teacherpay,StateeducationpolicyI.IntroductionInnearlyanycomparisonofeducationalperformance,GeorgiaregularlyscorespoorlyrelativetootherstatesPublicationofsuchfindingsis,asexpected,followedbypublicofficialsannouncingtheneedtoimprovepubliceducationinthestate.StateofficialsinGeorgiahadapromisingidea:giveK-12teachersamonetaryincentivetoincreasetheirformalacademicqualifications.Thereasoningbehindthepolicyisthatbetterqualifiedteacherswillproducehigherqualityeducationalservices;teachersacquiringmore33
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