Evaluation
Researchers worked with a large private school network in Pakistan to evaluate the effects of performance raises on outcomes such as teacher behavior, student learning, and student socioemotional development. They found that, compared to flat payments, performance pay attracted more high-quality teachers. In terms of types of performance pay, those based on objective and subjective measures (supervisor observations and student test scores, respectively) were equally effective at increasing student test scores, but objective performance pay negatively affected student socioemotional development, whereas subjective performance pay had a small positive effect.