Study: Teacher retention bonuses result in lower turnover rates, higher test scores

Offering teachers a retention bonus to stay at low-performing schools may increase test score gains among students in both reading and mathematics, according to a new study.

Walker Swain, an assistant professor in the Department of Lifelong Education, Administration, and Policy, along with researchers at New York University and the University of North Carolina, Chapel Hill, examined the effects of offering a one-time, $5,000 selective retention bonus to teachers at high-poverty schools in Tennessee.

“We initially found compelling evidence that top-rated teachers who received bonuses, especially reading and math teachers, were more likely to come back than near-top-rated teachers who just barely missed being eligible,” said Swain. “That sort of sharp eligibility cutoff is great for evaluation, but it also is an important reminder that differentiated pay can be pretty arbitrary.”

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