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This paper analyses the characteristics of Chilean teachers and the institutional context of teachers’ labor market. Salary trends, from 1990 on, are analyzed to show the effects on the behavior of those applying to study pedagogy; in addition teachers’ salaries are compared to those of other similar workers. The paper also studies the incentives implicit in the current salary structure for teachers and offers a preliminary assessment of the impact of the National System of Performance Assessment (SNED) on student outcomes. The SNED is examined for two reasons: until recently, it was the sole monetary incentive associated with teacher evaluations; and similarly, it is the sole incentive that evaluates teachers’ performance according to students’ results on standardized tests. Finally, the paper presents the opinions of teachers and principals about performance evaluation and monetary incentive payments associated with them.
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