Social and Behavioral Sciences Commons^™

A Study Of The School Principal Labor Market In Arkansas: Implications For Incentive-Based Compensation Policies To Improve Principal Quality, Marc Jacob Holley

Graduate Theses and Dissertations

Improving principal quality in Arkansas may be a partial solution to the public policy problem of low performing public schools. Just as policymakers in other states are beginning to explore incentive-based compensation policies to improve principal quality, education policymakers in Arkansas should look to these policies as a way to align goals and minimize agency costs. Setting incentives tied to transparent, publicly available performance measures can resolve monitoring difficulties inherent in principal-agent relationships and can improve goal congruence by signaling clearly about policy priorities. Before plowing forward with performance pay reforms for school principals, Arkansas policymakers could make better decisions …