Does Raising the Principal's Wage Improve the School's Outcomes? Quasi-Experimental Evidence from an Unusual Policy Experiment in Israel

24 Pages Posted: 2 Dec 2008

See all articles by Victor Lavy

Victor Lavy

University of Warwick - Department of Economics; Hebrew University of Jerusalem - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Abstract

This paper reports estimates of the causal effects of a 50 percent increase in the salary of headmasters of high schools in Israel. The results suggest that the program led to significant improvements in twelfth-grade students' academic achievements. However, the effect was relatively modest, comprising increases of about 510 percent in the school mean matriculation rate, average score and number of subjects and credit units taken in matriculation programs. Based on these results and the lack of evidence regarding the effect of increasing teachers' salary, it seems that priority should be given to paying higher wages to school principals.

Suggested Citation

Lavy, Victor, Does Raising the Principal's Wage Improve the School's Outcomes? Quasi-Experimental Evidence from an Unusual Policy Experiment in Israel. Scandinavian Journal of Economics, Vol. 110, No. 4, pp. 639-662, December 2008. Available at SSRN: https://ssrn.com/abstract=1308717 or http://dx.doi.org/10.1111/j.1467-9442.2008.00555.x

Victor Lavy (Contact Author)

University of Warwick - Department of Economics ( email )

Coventry CV4 7AL
United Kingdom

Hebrew University of Jerusalem - Department of Economics ( email )

Mount Scopus
Jerusalem, 91905
Israel
+972 2 588 3245 (Phone)
+972 2 581 6071 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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