Teacher incentives based on the progress of entire schools may be more effective than incentives based solely on individual performance, according to new research. Professors Thomas Ahn of the University of Kentucky and Jacob Viglor of Duke found that North Carolina’s teacher incentive program, which rewards teachers based on school-wide performance, leads teachers to exert more effort and raises student achievement.

The report, which they presented yesterday at the American Enterprise Institiute, also found teacher incentives are more cost-effective investments in education than other reforms, such as reductions in class sizes.