Teacher turnover hits hardest in schools that can least afford it. In São Paulo, Brazil’s largest city, schools serving disadvantaged communities have historically struggled to retain experienced teachers, creating a revolving door that disrupts student learning. But new research shows that targeted financial incentives can dramatically change this pattern.
The Challenge: High Turnover in Vulnerable Schools
Before 2022, São Paulo’s schools faced average annual teacher turnover rates of around 10%. However, this figure masked significant disparities – some schools, particularly those in favelas and peripheral neighborhoods, experienced turnover rates approaching 30%. These schools, often serving the city’s most vulnerable students, faced a constant challenge of rebuilding their teaching staff.
A Bold Solution: Financial Incentives Based on Need
To address this challenge, São Paulo’s education department implemented an innovative program offering wage premiums ranging from 5% to 25% of base salary, with higher incentives going to schools with historically higher turnover rates. The size of these incentives was significant – at the highest level, teachers could receive an additional R$1,500 monthly (approximately 25% of their regular salary).
The Results: Money Makes a Difference
Figure 1
The impact was substantial. Schools offering the highest incentives (20-25% salary increase) saw turnover rates drop by 26% compared to pre-program levels. Even schools with lower incentives experienced a 13% reduction in teacher departures (figure 1). Overall, the program reduced turnover by nearly 18% across all participating schools.
Beyond Retention: Attracting New Talent
Figure 2
The program didn’t just keep teachers from leaving – it made previously hard-to-staff schools more attractive to new talent. Schools offering higher incentives saw significant increases in applications from teachers seeking transfers, expanding the pool of educators willing to work in historically challenging locations.
Impact on Student Learning
Most importantly, the program improved student outcomes. Schools offering high incentives saw test scores increase by 0.3-0.6 standard deviations in both mathematics and Portuguese language
assessments. This suggests that stable, experienced teaching staff directly contributes to better student learning.
Looking Forward
São Paulo’s experience offers valuable lessons for education systems worldwide. While education reform often focuses on complex interventions, sometimes straightforward financial incentives can effectively address fundamental challenges. The key insights:
1. Financial incentives work – teachers, like other professionals, respond to meaningful salary increases
2. Higher incentives (20-25%) produce stronger results than modest ones (5-10%)
3. Stable teaching staff contributes to improved student achievement
4. Targeted incentives can help break the cycle of disadvantage in vulnerable schools
The challenge now is sustainability and scalability. How can other cities replicate São Paulo’s success? How can these programs be maintained over time as schools’ needs change? These questions deserve attention as education leaders worldwide seek solutions to teacher turnover in their most challenging schools. Based on IDB working paper: Impact of Monetary Incentives on Teacher Decisions to Leave and Choose Schools: Evidence from a Policy Reform in Sao Paulo