Selecting or rewarding teachers

Using data from three waves of PIRLS, this paper examines the effect of teacher quality on pupils’ literacy test scores at 4 grade by exploiting variations induced by reforms in teachers’ selection and/or reward. We construct an original dataset of relevant reforms taking place at the national level over the last century and affecting the working conditions of primary schools teachers, matching them by the year when they entered the profession. After showing that teacher experience/age and qualification are significantly correlated with student competences, we study the correlation between teacher working conditions (including recruitment, pay and retirement policies) and pupil achievement. Our identifying assumption is that the impact of reforms dissipates with the distance between reform introduction and entry into the profession. Results point to more selective recruitment process and, at a lesser extent, more generous wage conditions as effective ways to enhance pupils’ performance. JEL code: H52 (Government Expenditures and Education), I21 (Analysis of Education), I28 (Government Policy), J44 (Professional Labour Markets – Occupational Licensing)