Performance Pay: Michigan

Retaining Effective Teachers Policy

Goal

The state should support performance pay but in a manner that recognizes its appropriate uses and limitations.

Meets
Suggested Citation:
National Council on Teacher Quality. (2011). Performance Pay: Michigan results. State Teacher Policy Database. [Data set].
Retrieved from: https://www.nctq.org/yearbook/state/MI-Performance-Pay-9

Analysis of Michigan's policies

Michigan supports performance pay. As of September 1, 2011, school districts are required to "implement and maintain a method of compensation for its teachers...that includes job performance and job accomplishments as a significant factor in determining compensation and additional compensation." The teacher evaluation for job performance must at least in part be based on student growth data measured by assessments as well as other objective criteria.

Citation

Recommendations for Michigan

State response to our analysis

Michigan recognized the factual accuracy of this analysis.

Research rationale

Research on merit pay in 28 industrialized countries from Harvard's Program on Education Policy and Governance found that students in countries with merit pay policies in place were performing at a level approximately one year's worth of schooling higher on international math and science tests than students in countries without such policies (2011). 

Erik Hanushek found that a teacher one standard deviation above the mean effectiveness annually generates $400,000 in student future earnings for a class size of 20. See Hanushek, Erik A. "The Economic Value of Higher Teacher Quality," National Bureau of Economic Research, Working Paper 16606 (December 2010).

In addition, numerous conference papers published by the National Center on Performance Incentives reinforce the need to recognize the limitations and appropriate uses of performance pay. See: http://www.performanceincentives.org/.