Cash incentives for high school students to perform better in school are growing in popularity, but we understand very little about them. Does paying students for better Advanced Placement (AP) test scores encourage enrollment in AP classes? Does it lead to more students taking the tests and achieving passing scores? Do cash incentives lead to more students going to college?
I set out to determine the impact of a cash incentive program operating in a number of Texas high schools. The Advanced Placement Incentive Program (APIP) is a novel initiative that includes cash incentives for both teachers and students for each passing score earned on an Advanced Placement exam. The program is targeted to schools serving predominantly minority and low-income students with the aim of improving college readiness. The APIP was first implemented in 10 Dallas schools in 1996 and has been expanded to include more than 40 schools in Texas. The National Math and Science Initiative awarded grants to Arkansas, Alabama, Connecticut, Kentucky, Massachusetts, Virginia, and Washington to replicate the APIP and plans to expand these programs to 150 districts across 20 states.
Using data from the Texas Education Agency, I evaluated how the APIP affected education outcomes in participating schools in the years following implementation. I studied whether the program increased AP course enrollment and the share of students sitting for AP (or International Baccalaureate [IB]) examinations. Since improved AP outcomes may not necessarily reflect increased learning and could come at the expense of other academic outcomes, I also looked beyond these immediate effects to the broader set of outcomes, such as high school graduation rates, SAT and ACT performance, and the percentage of students attending college.