American Economic Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
The Behavioralist Goes to School: Leveraging Behavioral Economics to Improve Educational Performance
American Economic Journal: Economic Policy
vol. 8,
no. 4, November 2016
(pp. 183–219)
Abstract
We explore the power of behavioral economics to influence the level of effort exerted by students in a low stakes testing environment. We find a substantial impact on test scores from incentives when the rewards are delivered immediately. There is suggestive evidence that rewards framed as losses outperform those framed as gains. Nonfinancial incentives can be considerably more cost-effective than financial incentives for younger students, but are less effective with older students. All motivating power of incentives vanishes when rewards are handed out with a delay. Our results suggest that the current set of incentives may lead to underinvestment.Citation
Levitt, Steven D., John A. List, Susanne Neckermann, and Sally Sadoff. 2016. "The Behavioralist Goes to School: Leveraging Behavioral Economics to Improve Educational Performance." American Economic Journal: Economic Policy 8 (4): 183–219. DOI: 10.1257/pol.20130358Additional Materials
JEL Classification
- D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
- H75 State and Local Government: Health; Education; Welfare; Public Pensions
- I21 Analysis of Education
- I28 Education: Government Policy