A study by US non-profit research organisation, Rand Corporation has found that teacher bonuses did not have an effect on student achievement.

The study titled ‘A Big Apple for Educators. New York City’s Experiment with Schoolwide Performance Bonuses’, an experiment in New York schools which evaluated the effects that teacher bonuses had on students, teachers and the school.

Rand saw the the key findings as:
“… Schoolwide Performance Bonus Program did not improve student achievement at any grade level and did not affect school Progress Reports.”
“The program did not affect teachers’ reported attitudes, perceptions, or behaviors.”
“The majority of schools developed award distribution plans that reflected preferences for equal sharing of bonuses.”
“Many teachers in this study reported that the bonus was desirable but also reported not changing their teaching practices in response to the program.”
(From: http://www.rand.org/pubs/research_briefs/RB9596/index1.html, 22 July 2011)

The Australian Government is looking at implementing a similar system of teacher bonuses.

The report can be downloaded from the Rand Corporation website.

More information:

Rand media release – New York City School-Based Financial Incentives Program Did Not Improve Student Achievement or Affect Reported Teaching Practices