ABSTRACT
This chapter examines research and theory from economics to highlight several key dynamics in teacher evaluation. Teacher evaluation centers on the search for good information about teacher effectiveness. This information can narrow information asymmetry between the agent, in this case the teacher; the principal, who can be considered the school leader who evaluates the teacher; the school district; the state; and the taxpayers. School systems (and leaders) attempt to access better information about teachers’ practice in order to identify teachers whose performance does not meet district or state standards. Simultaneously, teacher evaluation seeks to enhance teachers’ human capital through the provision of feedback and other learning opportunities. Recent teacher evaluation policies have increased the amount and quality of information available to schools, districts, and states. This chapter assesses the implications of these new sources of information for teacher evaluation, explores the promise of paying teachers for their performance, and discusses how a cost-benefit framework could be applied to teacher evaluation.
