Skip to main content

Mobile Navigation

  • National
    • Policy
      • High Expectations
      • Quality Choices
      • Personalized Pathways
    • Research
    • Commentary
      • Gadfly Newsletter
      • Flypaper Blog
    • Events
    • Scholars Program
  • Ohio
    • Policy
      • Priorities
      • Media & Testimony
    • Research
    • Commentary
      • Ohio Education Gadfly Biweekly
      • Ohio Gadfly Daily
  • Charter Authorizing
    • Application
    • Sponsored Schools
    • Resources
  • About
    • Mission
    • Board
    • Staff
    • Career
Home
Home
Advancing Educational Excellence

Main Navigation

  • National
  • Ohio
  • Charter Authorizing
  • About

National Menu

  • Topics
    • Accountability & Testing
    • Advanced Education
    • Career & Technical Education
    • Charter Schools
    • Curriculum & Instruction
    • ESSA
    • Evidence-Based Learning
    • Facilities
    • Governance
    • Personalized Learning
    • Private School Choice
    • School Finance
    • Standards
    • Teachers & School Leaders
    • Think Again
  • Research
  • Commentary
    • Gadfly Newsletter
    • Flypaper Blog
    • Gadfly Podcast
  • Events
  • Scholars Program

Merit pay? Not so fast!

Peter Meyer
2.7.2011

A new study released by Education Next will cool some jets among proponents of performance-based pay for teachers.? The report, by Sarena Goodman and Lesley Turner, PhD candidates in Columbia University's Department of Economics, analyses New York City's pioneering School-Wide Performance Bonus Program, launched in 2007, and finds ?very little effect overall, positive or negative.??

The program, which was the subject of intense negotiations between the city's Department of Education and the United Federation of Teachers, was initiated in 181 randomly selected, disadvantaged elementary schools (chosen from a group of 309 high-need schools) and was distinguished by the collaborative nature of its bonus system: the money was given to schools, based on school-wide student performance,?and then distributed to teachers by a school committee made up of two administrators and two UFT representatives.? If a school achieved pre-set academic goals, it received a bonus that amounted to $3,000 per teacher, about 7 percent of a starting teacher's salary and 3 percent of a veteran's annual salary. ?Not bad.

It just didn't?do much for the?kids.

The researchers cite a number of complicating factors in trying to analyze the Bonus Program ? including the fact that NYC was implementing other accountability measures at the time and that most of its schools improved. However, the researchers, did find a ?modest?but meaningful? impact of the program in smaller schools with fewer teachers.? They hypothesize,?

[T]his particular type of merit pay program, where bonuses are based on school-wide performance and teachers expect to receive bonus payments regardless of their effort, does not work in all schools. Group bonuses may weaken the incentives for individual teachers to increase effort devoted to raising student achievement....

This effect is minimized, the researchers conclude, in smaller schools, where individual effort would have more impact on the school's overall score:?

[A] very good teacher with a large number of teaching colleagues can do less to raise school-wide student performance than a teacher of the same quality in a school with fewer teachers.

Goodman and Turner conclude that ?we are a long way from amassing a convincing body of research on either side of the debate,? but it should send a message to merit pay proponents that the devil is in the details and to teacher unions that there are limits to the collaborative model.?

--Peter Meyer, Bernard Lee Schwartz Policy Fellow

Tags: New York United Federation of Teachers United States Department of Education

Peter Meyer is an adjunct fellow with the Thomas B. Fordham Institute. Meyer is also a former News Editor of Life magazine and the author of numerous nonfiction books, including the critically acclaimed The Yale Murder (Empire Books, 1982; Berkley Books, 1983) and Death of Innocence (G.P. Putnam’s Sons, 1985; Berkley Books, 1986). Over the course of his three-decade journalism career Meyer, who…

View Full Bio
Fordham Logo

© 2026 The Thomas B. Fordham Institute
Privacy Policy
Usage Agreement

National

P.O. Box 110
Burke, VA 22009

202.223.5452

[email protected]

Ohio

P.O. Box 82291
Columbus, OH 43202

614.223.1580

[email protected]

Sponsorship

130 West Second Street, Suite 410
Dayton, Ohio 45402

937.227.3368

[email protected]