NBER WORKING PAPER SERIES PRINCIPALS AS AGENTS: SUBJECTIVE PERFORMANCE MEASUREMENT IN EDUCATION Brian A. Jacob Lars Lefgren Working Paper 11463 http://www.nber.org/papers/w11463 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 June 2005 We would like to thank Joseph Price and J.D. LaRock for their excellent research assistance. We thank David Autor, Joe Doyle, Sue Dynarski, Amy Finkelstein, Chris Hansen, Robin Jacob, Jens Ludwig, Frank McIntyre, Jonah Rockoff, Doug Staiger, Thomas Dee and seminar participants at UC Berkeley, Northwestern, BYU, Columbia, Harvard, MIT and the University of Virginia for helpful comments. All remaining errors are our own. Jacob can be contacted at: John F. Kennedy School of Government, Harvard University, 79 JFK Street, Cambridge, MA 02138; email:
[email protected]. Lefgren can be contacted at: Department of Economics, Brigham Young University, 130 Faculty Office Building, Provo, UT 84602-2363; email: l-
[email protected]. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research. ©2005 by Brian A. Jacob and Lars Lefgren. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. Principals as Agents: Subjective Performance Measurement in Education Brian A. Jacob and Lars Lefgren NBER Working Paper No. 11463 June 2005 JEL No. I20, I28, J30, J70 ABSTRACT In this paper, we compare subjective principal assessments of teachers to the traditional determinants of teacher compensation – education and experience – and another potential compensation mechanism -- value-added measures of teacher effectiveness based on student achievement gains.