Does Raising the Principal's Wage Improve the School's Outcomes? Quasi‐experimental Evidence from an Unusual Policy Experiment in Israel |
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| Authors: | Victor Lavy |
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| Affiliation: | 1. Royal Holloway University of London Hebrew University, Jerusalem 91905, Israel msvictor@huji.ac.il;2. Special thanks go to the staff of the Ministry of Education for their assistance with the data as well as for providing the details and the participants in the Personal Compensation Contracts Program. I benefited from comments from the referees of this journal. Alex Levkov, Issi Romem, Orit Vaaknin and Eli Berglas provided expert research assistance. I also gratefully acknowledge funding from the Falk Research Institute. The views expressed in this paper are those of the author and are not endorsed by program sponsors or funding agencies. |
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| 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 5–10 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. |
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| Keywords: | School principals wages cognitive achievements I21 I28 J24 |
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