NYC School-Wide Bonus Program

The NYC School-Wide Bonus Program is a group-based teacher incentive pay program implemented in New York City public schools serving kindergarten through eighth grade. Schools randomly selected into the treatment group were eligible to earn school-level bonuses based primarily on student achievement on state math and reading exams. Schools that achieved target scores or received an 'A' accountability grade for two consecutive years received bonuses of $3,000 per union teacher, while schools meeting 75% of the target score received $1,500 per union teacher. The program required 55% of a school's United Federation of Teachers staff to vote in favor of participation. Each participating school formed a four-member compensation committee to determine bonus distribution schemes after exams. The program was implemented in the 2007-2008 school year and continued in 2008-2009, with 181 schools originally selected for the treatment group (128 assigned to treatment, 53 to control) from high-poverty schools.