The long run effects of a teacher-focused school reform on student outcomes

This paper examines the effects of a teacher-focused school reform program — combining performance pay with teacher observation and feedback — implemented in high-need schools on students’ longer-run educational, criminal justice, and economic self-sufficiency outcomes. Using linked administrative data from a Southern state, we leverage the quasi-randomness of the timing of program adoption across schools to show that the school reform improved educational attainment and reduced both felony criminal activity before age 19 and dependence on government assistance in early adulthood (ages 18–22). We find little scope for student sorting or changes in the composition of teacher workforce to explain the findings, and instead find changes in school climate consistent with improved school environments and increased teacher efficiency. Program benefits far exceeded its costs. A comparison with a similar educator-focused reform suggests that the individual incentive component of the program is necessary but not sufficient to improve student outcomes. • Teacher-focused reform combining performance pay with teacher observation, and feedback improved student outcomes. • Reform increased educational attainment, reduced felony crime activity, and lowered welfare reliance in early adulthood. • Gains were driven by improved school climate and teacher efficiency, not sorting. • Benefits exceeded costs.