Essays on The Impact of Teachers' Compensation Contracts on Their Performance or Educational Outcomes Literature review

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The paper “ The Impact of Teachers' Compensation Contracts on Their Performance or Educational Outcomes” is a spectacular example of the literature review on finance & accounting. The teaching fraternity completely experiences conditions similar to the rest of the working categories of people and therefore is susceptible to the corresponding access to the provision of the incentives and other remunerations to bolster their morale for their optimum working. The educational sector is considered to experience less competition as compared to other sectors of the economy notably the public schools. The setting of the standards wholly lies by themselves as their main goal imparting essentials skills necessary to ensure optimum productivity of the populace (Eric and Steven 2006, pg178).

The goal of basic education is to eliminate illiteracy. Hence it is worth noting that the bottom line of the education is earning. However equitable and timely rewards of the teacher are not immediately possible, but after many years after the student even if that could be a dependable measuring table. The vital compensation structures facilitate equitable rewarding modes for the teachers as inherent in the empirical economical findings outlined herein.

Notably, certain critical economic theories support the concept of the provision of incentives to the teachers to improve their output and thus improve the quality of their production (Edward 2003, pg 169). Essentially, the selected theories note that compensation based on the output models is successively applied when the teaching output is vividly measured as reading from the corresponding pay (Edward 2003, pg 179). Theory of compensationThe rules on the theory of compensation roots from the relation of the funding of input versus the payment outcome and this face criticism that it is not result-oriented.

Critics argue that the execution of this policy act perpetuates other jointed and massive challenges encountered in the education sector, and thus the opposite of the teachers’ organization is basically out of this understanding.


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Duflo, E., R. Hanna and S. P. Ryany (2010). Incentives Work: Getting Teachers to Come to School. MIT(Department of Economics and J-PAL) and the Kennedy School of Government, Cambridge,


Derek, N. (2011). The design of performance pay in education. Handbook of the Eco-

nomics of Education.

Edward, L. (2003), Teacher incentives', Swedish Economic Policy Review 10 pp.179{


Eric, H. and Steven, R. (2006), `Teacher Quality', Handbook of the Economics ofEducation.

Jonah E. Rocko_ (2004). The Impact of Individual Teachers on Student Achievement: Evidence from Panel Data. The American Economic Review 94(2) pp.247{252

Muralidharan, K. and V. Sundararaman (2009). Teacher Performance Pay: Experimental Evidence from India (NBER Working Paper 15323). National Bureau for Economic Research, Washington DC.

U.S. Dept. of Education, National Center for Education Statistics. National Education Longitudinal Study, 1988: First Follow-Up (1990). U.S. Dept. of Education, Office of Educational Research and Improvement [producer], 1992. Ann Arbor, MI: Inter-university Consortium Political and Social Research [distributor], 1999-08-18. doi:10.3886/ICPSR09859.v1

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