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The purpose of this study was to empirically analyze the influence of merit payment on student achievement in South Korea, specifically the proportion of students with above-average test scores and the proportion of students with below-average test scores over six years (2011–2016). EduData Service System (EDSS) school-level panel data was utilized for analysis, which included pooled OLS, a fixed-effects model, and a two-way fixed-effects model. The results of the fixed-effects model showed that merit payment in Korea likely increases the proportion of students with high proficiency in Korean and English, but tends not to reduce the proportion of students with low proficiency in Korean, English, and math. However, the results of the two-way fixed effects model indicated that merit payment has no statistically significant effect on the proportion of students with above-average or below-average test scores in Korean, English, and math. Recommendations for policymakers, researchers, and educators are provided.

Merit payment for elementary, middle, and high school teachers: analysis of its effects on student academic achievement