Cons
1. Low teacher morale and increased competition between teachers.
2. Wasted time and money in the administration of the merit pay plans.
3. Little evidence from research that incentive programs lead to student achievement.
In 1994 the Urban Institute conducted a study and found some positive short-lived effects of merit pay, but concluded that most merit pay plans "did not succeed at implementing lasting, effective ... plans that had a demonstrated ability to improve student learning." Problems included low teacher morale because of increased competition between teachers, as well as wasted time and money in the administration of the merit pay plans. The same study found "little evidence from other research...that incentive programs (particularly pay-for-performance) had led to improved teacher performance and student achievements."
Marie Gryphon, an education policy analyst at the Cato Institute, makes some practical objections:
- The system can't simply reward high scores. If it did, it would favor teachers in wealthy neighborhoods whose students came to school with excellent skills. Nor can the system reward only improvement. If it did, it would unfairly penalize teachers whose students were already scoring too well to post large gains.
- Moreover, any money for test results scheme will worsen the problem of teachers cheating on standardized tests to avoid the consequences of the No Child Left Behind Act. Teachers willing to erase wrong answers on exams to avoid having their school labeled "needing improvement" will also be tempted by the thought of a personal raise.
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