Financial Incentives and Teacher Performance

41 Pages Posted: 27 Sep 2019

See all articles by Alastair Berg

Alastair Berg

Camberwell Grammar School; RMIT University

Date Written: December 2, 2015


I examine the broader political economy and the impact classical-liberal ideology has had on education policy decisions in the Western and wider world. I then explore how incentives influence behaviours in the broader economy, before finally investigating what the current literature says about the relationship between financial incentives and teacher performance. This paper focuses on Australia with a view to evaluating policy choices that may have a beneficial impact on teacher performance and thus student outcomes in this country. To facilitate such an analysis I examine a diverse range of international jurisdictions to see what conclusions can be drawn as to the effect of teacher incentive pay on performance.

Keywords: Financial incentives, teacher performance, classical-liberalism

JEL Classification: H52, H75

Suggested Citation

Berg, Alastair, Financial Incentives and Teacher Performance (December 2, 2015). Available at SSRN: or

Alastair Berg (Contact Author)

Camberwell Grammar School ( email )

55 Mont Albert Rd
Melbourne, Victoria 3126
3126 (Fax)

RMIT University ( email )

124 La Trobe Street
Melbourne, 3000

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