Can Financial Incentives Help Disadvantaged Schools to Attract and Retain High-performing Teachers?: Evidence from Chile
The extensive sorting of more talented teachers into the most advantaged schools contributes to the wide socioeconomic achievement gaps in Latin America. The Chilean Pedagogical Excellence Assignment (AEP, for its Spanish acronym) is a unique program in the region that provides monetary incentives to talented teachers with an additional bonus if they work in disadvantaged schools. The eligibility rule of this program allows us to implement a sharp regression discontinuity design to estimate the causal impact of winning the award on the school choice decisions of talented teachers.