Chapter 6: Incentivized School Standards Work

Most economists, psychologists, and lay people think humans respond to significant incentives. Parents, managers, and others responsible for improving performance routinely use incentives to encourage desirable behavior. The lure of the top ranks in competitive sports attracts immense energies of youths and adults, whether players or spectators. Standards with incentives also work in universities: Because they expect later compensation in money and prestige, ambitious college students strive for admission to the top professional schools of business, law, and medicine. Faculty raises in most (nonunionized) universities depend on teaching, research, and service.

In the ideal world of Jean Jacques Rousseau and many romantic educators, “intrinsic motivation” would reign. Instead of responding to incentives, we would accomplish things when the mood strikes. We would only do things worth doing as ends in themselves—not to attain further ends such as money, prestige, or altruistic contributions.