The importance of relative performance feedback information: evidence from a natural experiment using high school students

Azmat, Ghazala and Iriberri, Nagore (2009) The importance of relative performance feedback information: evidence from a natural experiment using high school students. CEP Discussion Paper (915). London School of Economics and Political Science. Centre for Economic Performance, London, UK. ISBN 9780853283485

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Abstract

We study the effect of providing relative performance feedback information on performance under piece-rate incentives. A natural experiment that took place in a high school offers an unusual opportunity to test this effect in a real-effort setting. For one year only, students received information that allowed them to know whether they were above (below) the class average as well as the distance from this average. We exploit a rich panel data set and find that the provision of this information led to an increase of 5% in students’ grades. Moreover, the effect was significant for the whole distribution. However, once the information was removed the effect disappeared. To rule out the concern that the effect may be driven by teachers within the school, we verify our results using national level exams (externally graded) for the same students, and the effect remains.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk/
Additional Information:	© 2009 The authors
Divisions:	Centre for Economic Performance
Subjects:	L Education > LB Theory and practice of education > LB1603 Secondary Education. High schools H Social Sciences > HB Economic Theory B Philosophy. Psychology. Religion > BF Psychology
JEL classification:	C - Mathematical and Quantitative Methods > C3 - Econometric Methods: Multiple; Simultaneous Equation Models; Multiple Variables; Endogenous Regressors > C30 - General M - Business Administration and Business Economics; Marketing; Accounting > M5 - Personnel Economics > M52 - Compensation and Compensation Methods and Their Effects (stock options, fringe benefits, incentives, family support programs, seniority issues) I - Health, Education, and Welfare > I2 - Education > I21 - Analysis of Education
Date Deposited:	06 Jul 2010 16:17
Last Modified:	15 Sep 2023 23:17
URI:	http://eprints.lse.ac.uk/id/eprint/28520

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