In recent years, educators and economists have experimented with a number of innovations to improve academic outcomes of students in developing countries. Providing cash rewards to students based on academic achievement may be a cost effective approach to achieve the goal. However, psychologists contend that external rewards undermines students' internal motivation to learn. To test these hypotheses, I am conducting a field experiment among eighth graders in public schools in the suburbs of Kathmandu, Nepal. Students receive cash reward at the end of each of three semesters based on their grades. Each exam is worth 100 points, and each point is worth 5 rupees (approximately 7 US cents). Therefore, each student can earn up to 500 rupees per semester. From... |