Do financial incentives crowd out intrinsic motivation to perform on standardized tests?

B-Tier
Journal: Economics of Education Review
Year: 2018
Volume: 66
Issue: C
Pages: 125-136

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Financial incentives linked to academic performance have been proposed as a potentially cost-effective way to support improvement. However, a large literature across disciplines finds that extrinsic incentives, once removed, may crowd out intrinsic motivation on subsequent, similar tasks. We conduct a field experiment where students, parents, and tutors are offered incentives designed to encourage student preparation for a high-stakes state standardized test. The incentives reward performance on a separate low-stakes preparatory assessment designed to measure the same skills as the high-stakes test. Performance on the high-stakes test itself, however, is not incentivized. We find substantial treatment effects on the incented tests but no effect on the non-incented test. We also find suggestive evidence that the incentives crowd out intrinsic motivation to perform well on the non- incented test, but this effect is only temporary. One year later, treated students perform better than those in control on the same non-incented test.

Technical Details

RePEc Handle
repec:eee:ecoedu:v:66:y:2018:i:c:p:125-136
Journal Field
Education
Author Count
3
Added to Database
2026-01-25