The Role of Incentives for Improving Students’ Motivation and Performance
The Role of Incentives for Improving Students’ Motivation and Performance
- Andreas FidjelandAndreas FidjelandNordic Institute for Studies in Innovation Research and Education
Summary
Although the returns to education can be substantial, many students underperform in school, for example, by not putting in sufficient effort. To mitigate this underinvestment problem, policymakers are often eager to try to motivate students using extrinsic incentives, such as cash payments and merit scholarships, stricter grading standards, and more competitive admission processes. The design, scope, and implementation of such incentive policies with the goal of affecting student motivation and study habits have been a fruitful area of economic research over the last 30 years. However, the evidence on their potency for improving student performance is mixed. In particular, the use of extrinsic incentives often elicit strategic responses from students, resulting in behavior that might improve performance metrics, but are not productive in terms of learning and skill development. Many incentive policies have therefore ended up producing unintended consequences that goes contrary to the policy objective. As incentives are everywhere in any school system, economists should pursue a better understanding of how they affect which outcomes students focus on, the choices they make, and how these effects differ across groups of students. Broadening the scope of outcomes considered when assessing the effects of incentives, in particular a greater focus on what student’s choose not to do, could provide a fruitful foundation for future research.
Subjects
- Health, Education, and Welfare Economics
- Micro, Behavioral, and Neuro-Economics