Effects of Monetary Incentives on Teacher Turnover: A Longitudinal Analysis

Teacher turnover has been reported as a strong predictor for students’ academic achievement, yet little is known about the determinants of teacher turnover. Using a fixed effects model, we analyze panel data of individual teachers in North Carolina schools to test the effects of monetary incentives on teacher turnover. We find a U-shaped relationship between teacher salary and turnover, while the effects of group-based merit pay on turnover...