Concerned Markets

Concerned Markets

Economic Ordering for Multiple Values

Edited by Susi Geiger, Debbie Harrison, Hans Kjellberg and Alexandre Mallard

When political, social, technological and economic interests, values, and perspectives interact, market order and performance become contentious issues of debate. Such ‘hot’ situations are becoming increasingly common and make for rich sites of research. With expert empirical contributions investigating the organization of such ‘concerned’ markets, this book is positioned at the centre of the rapidly growing area of interdisciplinary market studies. Markets investigated include those for palm oil, primary health care and functional foods. The authors also examine markets and environmental concerns as well as better market design for those at the bottom of the pyramid.

Chapter 2: Expressing concerns over the incentive as a public policy device

Guus Dix

Subjects: business and management, marketing, organisation studies, economics and finance, institutional economics, social policy and sociology, sociology and sociological theory

Extract

Monetary incentives have recently become a fashionable instrument in education. The overall level of education is expected to rise when teachers receive a bonus for increased student performance. Israel was the first to experiment with performance-based pay for teaching personnel. In 2000, the Israeli government began to reward individuals and teams of the participating schools when they managed to accomplish a rise in student scores on matriculation exams. In the United States, several individual states similarly experimented with bonuses in primary and secondary education (Lavy, 2009). A nationwide program of performance pay for American teachers was established in 2006. The best performing among them would receive additional rewards drawn from the so-called Teacher Incentive Fund. Other countries such as Australia and the UK followed suit. In the Netherlands, the appreciation for and implementation of this particular policy measure came relatively late. A coalition of Liberals and Christian Democrats set 250 million euros aside in 2010 to spend on performance pay over a period of five years. In line with the Israeli approach, the Dutch government decided to begin with a series of experiments so as to ascertain what type of bonus would work best. Several schools participated in a pilot study just after the coalition agreement was signed.

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