Revisiting The Merits Of Merit Pay
Al Shanker was very concerned about the need to identify and replace incompetent teachers. The first time he wrote a column about it, his wife was one of the many people who warned him that the union’s teachers would be up in arms (see here). Shanker wasn’t worried, replying that "All of my members will read that, and they’ll all agree, because not one of them will think that they are one of the bad teachers that I’m talking about."
He was right. Most of the members were very supportive, probably for a variety of reasons. First, most teachers take their responsibilities as teachers very seriously, thus favoring the establishment and enforcement of high standards of professional practice. Second, teachers who don’t believe themselves to be effective are more likely to leave the profession – see here. And third, we know from research that most of us just believe that we are simply better than most other people. Psychologists describe this "illusory superiority" or "above average" effect as the tendency to make self-serving comparisons between oneself and others, with the consequence that an overwhelming majority of people judge themselves to be "better than average" on a variety of traits, skills, and socially desirable dimensions ( here and here).
Nevertheless, there are many teachers who support the idea of performance pay, even if they're wary of the details of how "merit" is defined (specifically, whether or not it includes test scores).
Now, it’s no secret that I think merit pay for teachers is of limited practical utility. Nevertheless, it’s important to understand why, evidence aside, some people (including teachers) might find the policy to be attractive. These are my thoughts on the issue: