Bankers Quote by Joseph E. Stiglitz
““In some circumstances, a focus on extrinsic rewards (money) can actually diminish effort. Most (or at least many) teachers enter their profession not because of the money but because of their love for children and their dedication to teaching. The best teachers could have earned far higher incomes if they had gone to banking. It is almost insulting to assume that they are not doing what they can to help their students learn, and that by paying them an extra $500 or $1,500, they would exert greater effort. Indeed, incentive pay can be corrosive: it reminds teachers of how bad their pay is, and those who are led thereby to focus on money may be induced to find a better paying job, leaving behind only those for whom teaching is the only alternative. (Of course, if teachers perceive themselves to be badly paid, that will undermine morale, and that will have adverse incentive effects)””
About This Quote
Source Article: Incentive Pay and Teacher Motivation, 2015
Extrinsic financial rewards can reduce intrinsic motivation, leading teachers to focus on pay rather than student learning, potentially harming morale and retention.
In simple terms: Money can undermine teachers’ love for teaching and reduce effort.
Key Takeaway
Prioritize intrinsic motivations and fair compensation.
Themes
motivation
education
incentives
teacher morale
Mood
reflective
critical
Type
educational
policy
When to use this quote
- classroom management
- teacher recruitment
- salary negotiations
- policy design
- school administration
Key Concepts
behavioral economics
intrinsic vs extrinsic motivation
public policy
Questions to Reflect On
- What non‑monetary incentives could sustain teacher enthusiasm?
- How can schools balance fair pay with intrinsic motivation?
A Different Perspective
Higher pay alone may not improve performance and can cause turnover.
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