Merit-based hiring systems aim to be fair and transparent, but can overlook the importance of on-the-job learning
In 2005, Colombia launched a major education reform to improve student outcomes by changing how public school teachers were hired. The idea was straightforward: hire teachers based on merit. The government introduced a standardized exam that tested candidates on their subject knowledge and teaching skills, followed by interviews. The goal was to replace the older, often politicized hiring system with a fairer, more transparent one, ensuring the most qualified candidates got the jobs.
At first glance, this approach seemed like a positive step for Colombia’s public education. Who could argue against hiring teachers based on merit? However, nearly two decades later, the results show a more complex reality. Our recent IZA Discussion Paper shows that, while this reform did select teachers with better test scores, it unexpectedly led to a decline in student performance. Why? The reform didn’t fully account for one critical factor: teachers’ experience in the classroom.
Before the reform, Colombia’s public schools employed both civil servants and contract teachers. Many contract teachers had years of experience, but the new system placed more value on test scores than on experience. As a result, many experienced teachers were replaced by younger, less experienced candidates who scored well on the exams but lacked practical teaching experience.
Following the reform, student test scores on high school exams fell by about 8% of a standard deviation. Even more concerning, fewer students went on to college, with enrollment dropping by over 10%. The biggest declines were seen in subjects like mathematics and English, which require both strong content knowledge and the ability to manage classroom challenges.
This decline points to an important lesson: teacher effectiveness is not just about academic skills. Although the new teachers performed well in their exams, they were less effective in practice due to their lack of experience. Schools with more new teachers saw larger drops in student performance, highlighting how critical practical teaching experience is.
This case reveals a common issue in education reforms: the gap between good intentions and real-world results. Merit-based hiring systems aim to be fair and transparent, but they can overlook the importance of on-the-job learning. The study identifies three key challenges that help explain the negative outcomes: (i) a long hiring freeze before the reform that led to many contract teachers gaining in-classroom experience that were later substituted by novice contract teachers; (ii) the new system struggled to fill positions, especially in less desirable locations; and (iii) the public calls to hire teachers were insufficient, leading to gaps in staffing.
The key takeaway from Colombia’s reform is that improving education requires a broader perspective. Policymakers should balance objective criteria like test scores with more subjective factors, such as teaching experience. Teaching is not just about knowing the material; it’s about engaging students, managing classrooms, and adapting to different learning needs. Additionally, the implementation of reforms needs careful attention. Limitations in state capacity can significantly affect the outcomes, and these should be addressed over time to minimize the impact on students.
© Matias Busso, Sebastián Montaño, Juan S. Muñoz-Morales, and Nolan G. Pope
Matias Busso is Lead Economist in the Research Department at the Inter-American Development Bank
Sebastián Montaño is PhD candidate specializing in labor economics at the University of Maryland
Juan S. Muñoz-Morales is Assistant Professor at the IÉSEG School of Management, affiliate of the Lille Économie Management research lab, and IZA Research Affiliate
Nolan G. Pope is Associate Professor at University of Maryland
Please note:
We recognize that IZA World of Labor articles may prompt discussion and possibly controversy. Opinion pieces, such as the one above, capture ideas and debates concisely, and anchor them with real-world examples. Opinions stated here do not necessarily reflect those of the IZA.
Related IZA World of Labor content:
Understanding teacher effectiveness to raise pupil attainment by Simon Burgess
Is teacher certification an effective tool for developing countries? by Todd Pugatch
How effective are financial incentives for teachers? by Scott A. Imberman
The importance of informal learning at work by Andries De Grip
For by Taylor Flowe on Unsplash