An analysis of pay-for-grades schemes

Daniel Willingham:

Roland Fryer is an economist at Harvard University who had an idea for a straightforward method of getting kids at urban schools more engaged: Pay ’em.
Four reward schemes were tried in four different cities, each in a randomized control trial lasting one year. The results are reported in Time magazine this week.
New York City: Students were promised pay for higher standardized test scores. There was no effect.
Chicago: Students were paid for higher grades. The rewards prompted higher attendance rates and higher grades, but standardized test scores were not improved.
Washington, D.C.: Students were rewarded for improved behaviors such as good attendance, refraining from fighting, and so on. There was a modest improvement on standardized test scores.