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The effects of merit pay on teacher job satisfaction

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The purpose of this study is to determine if the existence of a district-level merit pay system has any effects on teacher job satisfaction. Using a large sample of public school teachers from the year 2007, the results of this study suggest that teachers who work in districts that use a merit pay system are no less satisfied with their jobs than are other teachers; these results are consistent for both an ordered probit model and a two-stage analysis. Although the effect of merit pay on overall job satisfaction was insignificant, teachers in merit pay districts were less enthusiastic, did not think teaching was important, and were more likely to leave for better pay. However, in examining a sample of teachers who worked only in merit pay districts, it was found that teachers who received merit pay were more satisfied overall with their jobs than were teachers who did not receive merit pay.
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Keywords: I21; J28; job satisfaction; merit pay; teachers

Document Type: Research Article

Affiliations: Department of Economics, Quinnipiac University, Hamden, CT, 06518, USA

Publication date: 2013-11-01

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