Effect of Performance-based Compensation Systems on Principal Labor Markets

Abstract

Prior research documented that the quality of school principals is inequitably distributed. Given the pivotal role that school principals play in improving student and school performance, this sorting pattern is a concern among policymakers. One possible way to address the problem may be to use performance-based compensation systems (PBCS) to influence principal labor markets. This study investigated the impact of PBCS on principal turnover and hiring in Tennessee, using longitudinal administrative data obtained from the Tennessee Department of Education and unique school- and district-level PBCS data from 2012 to 2020.

Suggested Citation

Hajime, M. (2023). Effect of Performance-based Compensation Systems on Principal Labor Markets. (Tennessee Education Research Alliance Working Paper No. 2023-04).