Reforming K-12 Education

Lessons From The Hoover Policy Boot Camp

Contributing Scholar: Caroline Hoxby

Education Policy: What Actually Improves Outcomes

Economic evidence offers new ways to think about some of education policy’s most persistent problems, from how teachers are paid to how students finance college and how universities identify academic talent.

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The Economics of Better Teacher Pay

Comment

Research on teacher value added finds substantial differences in how teachers affect student achievement and longer-term outcomes, including college attendance and earnings. Yet traditional salary schedules base compensation largely on experience and credentials rather than effectiveness. Hoxby examines whether differentiated compensation can better reflect teachers’ contributions, drawing on evidence from Wisconsin showing gains in student achievement and the recruitment of effective teachers.

Check out more on the topic:

Read "Program Report: Economics of Education" by Caroline Hoxby here.
Watch "Tom Siebel on Education, Reinvention, and the AI Revolution" here.
Read "What D.C. is proving about teacher salaries" here.

Learn more about Caroline M. Hoxby here.

Recorded on August 14, 2025.

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The opinions expressed in this video are those of the authors and do not necessarily reflect the opinions of the Hoover Institution or Stanford University.