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Employee evaluation and skill investments: Evidence from public school teachers

When an employee expects repeated evaluation and performance incentives over time, the potential future rewards create an incentive to invest in building relevant skills. Because new skills benefit job performance, the effects of an evaluation program can persist after the rewards end or even anticipate the start of rewards. I test for persistence and anticipation effects, along with more conventional predictions, using a quasi-experiment in Tennessee schools. Performance improves with new evaluation measures, but gains are larger when the teacher expects future rewards linked to future scores. Performance rises further when incentives start and remains higher even after incentives end.

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Document Object Identifier (DOI)
10.26300/h36d-0j56

EdWorkingPaper suggested citation:

Taylor, Eric S.. (). Employee evaluation and skill investments: Evidence from public school teachers. (EdWorkingPaper: 22-686). Retrieved from Annenberg Institute at Brown University: https://doi.org/10.26300/h36d-0j56

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