%0 Report %A Woessmann, Ludger %T Cross-Country Evidence on Teacher Performance Pay %D 2010 %8 2010 Jul %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 5101 %U https://www.iza.org/publications/dp5101 %X The general-equilibrium effects of performance-related teacher pay include long-term incentive and teacher-sorting mechanisms that usually elude experimental studies but are captured in cross-country comparisons. Combining country-level performance-pay measures with rich PISA-2003 international achievement micro data, this paper estimates student-level international education production functions. The use of teacher salary adjustments for outstanding performance is significantly associated with math, science, and reading achievement across countries. Scores in countries with performance-related pay are about one quarter standard deviations higher. Results avoid bias from within-country selection and are robust to continental fixed effects and to controlling for non-performance-based forms of teacher salary adjustments. %K international %K teacher performance pay %K PISA %K student achievement