The quality of school education is of substantial concern in most developed economies, including
Australia. Produce a report outlining the importance of teacher quality in achieving good
educational outcomes for children, and discussing the potential for a well designed compensation
contract to improve the performance of teachers.
In your report, you should refer to economic theory and empirical evidence. You should
discuss at least three empirical studies published in economics journals. The can examine either
the impact of teacher quality on educational outcomes, or the impact of teachers’ compensa-
tion contracts on their performance or educational outcomes (or a mixture of the two). Two
suggested empirical papers are given below: you can use these as two of your three empirical
studies if you wish to.