In this video, Dan Willingham describes six problems (some conceptual, some statistical) with merit pay for teachers.
Ed Next recently published an evaluation of the impact of a merit pay plan in New York City that awarded bonuses to all teachers in schools that met performance targets. Please see “Does Whole-School Performance Pay Improve Student Learning?” by Sarena Goodman and Lesley Turner, which appears in the Spring 2011 issue of Ed Next.