Abstract

In the fall of 2007, New York City began using student tests and other measures to assign each school a grade (A to F), and linked grades to rewards and consequences, including possible school closure. These grades were released in late September, arguably too late for schools to make major changes in programs or personnel, and students were tested again in January (English) and March (math). Despite this time frame, regression discontinuity estimates indicate that receipt of a low grade significantly increased student achievement, more so in math than English, and improved parental evaluations of school quality. (JEL H75, I21, I28, J45)

Teacher compensation schemes are often criticized for lacking a performance-based component. Proponents argue that teacher incentive pay can raise student achievement and stimulate systemwide innovation. We examine a group-based teacher incentive scheme implemented in New York City and investigate whether specific features of the program contributed to its ineffectiveness. Although overall the program had little effect on student achievement, we show that in schools where incentives to free-ride were weakest, the program led to small increases in math achievement. Our results underscore the importance of carefully considering the design of teacher incentive pay programs.

Objectives. Although employment among welfare mothers increased substantially following the 1996 welfare reform, some former welfare recipients failed to find stable employment. We review the extent to which low‐income mothers are without work and cash welfare for long periods of time and seek to understand the correlates of becoming chronically disconnected. Methods. We analyze data from a 1997–2003 panel study of single mothers who received cash welfare in an urban county in Michigan in February 1997. We develop a new measure of the extent to which former recipients are “chronically disconnected” from both employment and cash welfare and estimate regression models of the correlates of this economic outcome. Results. About 9 percent of respondents became chronically disconnected, defined as being without employment and cash welfare during at least one‐quarter of the months during the 79‐month study period. Important correlates of becoming chronically disconnected include having a physical limitation, having a learning disability, using illegal drugs or meeting the diagnostic screening criteria for alcohol dependence, and having no car or driver license. The chronically disconnected are more likely to have lost a job than to have lost welfare benefits and are more economically disadvantaged than those with regular sources of economic support. Conclusions. To reduce the number of women who fail to make a successful transition from welfare to work, more attention should be given to programs and policies that attempt to reconnect disconnected women to regular sources of economic support.

We provide the first experimental evidence on the effect of student loans on educational attainment. Loan amounts listed in financial aid award letters (“offers”) do not alter students’ choice sets but significantly affect borrowing. Students randomly receiving a nonzero offer were 40 percent more likely to borrow than those who received a $0 offer. Per additional borrower, loans increased by $4,000, GPA and completed credits increased by 30 percent, and transfers to four-year public colleges increased by 11 percentage points. Cost-benefit and theoretical analyses suggest nonzero offers enhance welfare, yet over five million students are not currently offered loans. (JEL D14, D91, I22, I23)