Research 

Job Market Paper

Motivating Students: Exploring the Effect of Incentives on Performance

Abstract: Effort is a critical input in the child's learning production function, yet there is very little evidence on how to effectively improve student effort and exam performance. This paper investigates the role of monetary and non-monetary incentives in improving student effort and performance. Specifically, students in Bangladesh were randomly assigned to receive either cash, certificates of excellence, public recognition, or nothing for their performance on a short-timed test. The cash and certificates were further randomized to be offered as "gains" or "losses". I find that all types of rewards significantly improve student effort and performance, with monetary incentives framed as gains having the largest impact. Importantly, these effects persist even after the removal of incentives. This suggests that low-cost (USD 1.75) incentives could be used to motivate children in cost-constrained low- and middle-income countries.