A few months back, Ohio gubernatorial candidate Vivek Ramaswamy caused waves by proposing to pay teachers and school administrators based on merit. In an op-ed in the Wall Street Journal, he blamed both sides of the political aisle for the “bleak reality” of “illiterate, innumerate graduates.” He argued that because teacher quality is the number one school-related factor affecting student progress, teacher pay should be directly tied to learning outcomes rather than seniority or credentials. At a campaign rally, he asserted that “meritocracy in compensation” would help Ohio become a “magnet” for the best educators.
While Ramaswamy maintains he’s not planning to pick a fight with teachers unions, the unions are clearly ready for one. The rest of Ohio, meanwhile, is likely feeling déjà vu because the Buckeye State has started down this road before. In April 2011, Governor John Kasich signed Senate Bill 5 into law. The bill was a controversial and comprehensive overhaul of collective bargaining rights that, among its many provisions, mandated merit pay for teachers based on evaluation results. In November of that same year, after a significant effort spearheaded by labor unions, voters repealed Senate Bill 5 via a statewide referendum.
Conventional wisdom says that Senate Bill 5 failed because of its breadth—the legislation didn’t just include teachers, but also firefighters, police officers, prison guards, and healthcare professionals. If a new proposal focused only on teachers, and only on implementing merit pay without eliminating collective bargaining, would Ohioans feel differently?
It’s far too soon to know. But as this discussion plays out over the next year or so, it will be important to consider not only public opinion, but also the evidence. There is a plethora of research examining the benefits and drawbacks of teacher merit pay, particularly in regard to student outcomes. One of the most comprehensive is a 2020 meta-analysis synthesizing results from thirty-seven studies to determine how teacher merit pay affects student test scores. Among the twenty-six studies conducted in the United States, teacher participation in a merit pay program is associated with a statistically significant increase in student test scores. On average, the effect is larger in math than English language arts.
That’s good news for merit pay advocates. It’s also noteworthy for lawmakers concerned about Ohio’s lackluster performance on national exams or about state test results showing that only half of Ohio students are proficient in math. However, the authors of the meta-analysis are careful to note that the effects vary based on program design and context. If policymakers want to use teacher merit pay as a lever to improve student test scores in Ohio, they’ll need to pay very close attention to program design and implementation.
Fortunately, the meta-analysis offers several approaches for studying merit pay programs. Understanding how these programs have—or haven’t—been successful will be crucial for policymakers as they consider whether it’s time for Ohio to take another crack at teacher merit pay.
Teacher recruitment and retention
Proponents of merit pay argue that it could boost efforts to recruit and retain high-performing teachers. Given all the headlines about Ohio’s teacher shortages, that’s an appealing prospect. But is it true? As part of the meta-analysis, the authors reviewed fourteen studies in their sample that examined teacher turnover. They found six studies reporting improved teacher recruitment and retention, five showing some positive and some insignificant effects, and three identifying mostly no effects. This suggests that merit pay has the potential to decrease overall teacher turnover and increase recruitment—though it’s worth noting again that program characteristics and context matter.
Professional development
A commonly cited critique of merit pay is that it overlooks the importance of professional development (PD). Merit pay programs are designed to motivate high performance, but for some teachers, motivation might not be the issue—instead, it might be a knowledge or skill gap.
The meta-analysis finds that programs coupled with in-service PD have an effect estimate on student test scores that’s larger than the overall effect of merit pay programs. In fact, programs paired with PD produce the largest summary effect estimate among various program characteristics. This evidence, the authors write, “supports the argument that teachers may already be exerting effort but are not sure how to improve their practice.” It is important to note, however, that merit pay programs without a PD component also have a statistically significant effect. This means programs with and without PD can have a positive impact, but the effect is larger when it includes PD. The upshot? Merit pay could be more motivating for teachers if it’s coupled with effective support.
Teacher motivation
The meta-analysis finds “relatively strong” evidence that the effects of merit pay on teacher motivation are aligned with its effects on student test scores. In other words, when a merit pay program motivates teachers, it also tends to produce positive effects on student test scores. No-brainer, right? But the differing effects of various programs suggest that not all merit pay programs are motivating to teachers. This hammers home that while a merit pay program might be beneficial for students, it will only be beneficial if it succeeds in motivating teachers.
The limits of teacher evaluations
One factor that might influence teacher motivation is a distrust of evaluation frameworks. Merit pay opponents argue that it’s difficult to measure teacher contributions to student learning, and thus unfair to link student outcomes to teacher pay. If teachers view an incentive program as unfair, it’s likely that their motivation—and the corresponding positive outcomes for students—will diminish.
According to the meta-analysis, programs that use criteria based on multiple measures of teacher effectiveness are associated with an effect size that’s larger than the overall summary effect. Put another way, programs have the biggest impact when merit pay is not based solely on test scores. In fact, while examining studies that use more than one measure of teacher effectiveness, the researchers found that the summary effect is larger among those that use “more sophisticated” teacher effectiveness measures. This finding is supported by multiple studies of teacher perceptions which found that teachers struggle to trust programs based solely on student test scores or value-added measures.
Grade level
According to the meta-analysis, programs at the elementary school level have larger summary effects than those in middle school. Unfortunately, there aren’t enough high school studies for reliable estimates in those grades. But larger summary effects at the elementary level suggest that merit pay is “most effective when teacher efforts are expected to be more tightly correlated with targeted student outcomes.” In short, time and opportunity matter. In elementary schools, teachers are typically responsible for one classroom of students all day, and thus have more time to concentrate on fewer students. In middle and high school, however, the influence of teachers “must be balanced with the time students spend in other classrooms with other teachers.” For merit pay to be effective, teachers need to believe their actions will directly impact student outcomes—and that belief could be influenced by the grade level they teach. “Future merit pay programs,” the authors write, “may need to offer different incentive structures for teachers in different subject areas and grade levels.”
Teaching to the test
If merit pay is tied to student performance on tests, then it’s likely that teachers will increase the time and effort they invest in preparing students for that test. This practice, known as “teaching to the test,” can lead to unintended consequences, including narrowing the content that students are exposed to in classrooms. To determine whether pay incentives lead teachers to focus only on tested subject matter, the researchers examined effect sizes for test scores that were not included among the criteria for receiving an incentive. The summary effect for these unincentivized test scores is neither statistically significant nor substantively meaningful. This suggests that merit pay is unlikely to produce gains outside of the outcomes that are being incentivized. In other words, if teachers qualify for merit pay based on state test results, then a well-designed program could lead to improved student scores on state tests—but not necessarily other exams, like the ACT/SAT.
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There are two headline takeaways from this comprehensive meta-analysis. The first is that introducing performance pay in Ohio schools could accomplish some of the goals that proponents like Ramaswamy are hoping to achieve. Merit pay programs are associated with a statistically significant increase in student test scores. They also have the potential to decrease teacher turnover and increase recruitment. The second takeaway is that the success of merit programs largely depends on design and context. If policymakers don’t get the details right, then it’s likely that merit pay won’t succeed in boosting student outcomes or bolstering the teacher pipeline.
But what, exactly, are those details? And how do they fit into Ohio’s current policy landscape? Stay tuned to find out.