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Is there moral hazard in linking performance pay of teachers to their students test scores?

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Is there moral hazard in linking performance pay of teachers to their students test scores?

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Over the objections of the teachers’ union, the Board of Education here on Thursday unanimously approved the nation’s largest merit pay program, which calls for rewarding teachers based on how well their students perform on standardized tests. The $14.5 million program, which immediately replaces a model with lower incentives, would distribute up to $3,000 annually per teacher and up to $25,000 for senior administrators.

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