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IME offers more money for schools with better results

The idea is to link financial incentives to the added educational value, not just the number of students.

Schools with high added educational value should receive financial incentives. This is proposed by experts from the Institute for Market Economics in connection with data from the international PISA 2025 study.

The idea is to link additional funding not only to the number of students or available resources, but to the result that the school achieves in relation to the initial characteristics of its students and the environment in which they learn.

The shortage of teachers is no longer the leading problem

Data from PISA 2025 show that 12% of students in Bulgaria are in schools whose principals indicate that the shortage of teachers hinders learning at least to some extent. The OECD average is 39%.

Material constraints are also reported as a relatively limited problem. Nine percent of students study in schools where the lack of textbooks, IT equipment, library or laboratory materials is cited as an obstacle to learning. For physical infrastructure, the share is 24% - this includes buildings, grounds, heating and cooling systems, lighting and acoustics.

For learning materials, the share in 2022 was 10%, and for physical infrastructure - 24%.

Higher salaries did not automatically lead to better results

According to the Institute for Market Economics, education reforms over the past decade have focused mainly on increasing teacher salaries and overall funding of the system. The 2017 goal of doubling salaries in three years has been achieved.

This has helped attract more and younger teachers, as well as increase interest in the specialties that prepare teachers. However, experts find no evidence that higher pay alone has led to better educational outcomes.

“Without specific quality measures, it is unlikely that we can expect an increase in student results“, say experts from the Institute for Market Economics.

Financing according to the achieved effect

The institute links the proposal to the high share of functionally illiterate students and the need for policies to focus on measurable results. According to experts, financial incentives for schools with high added educational value can create an internal incentive for principals to work for better achievements.

The proposal does not mean that schools should be compared solely on the absolute grades of students. The assessment should take into account the progress children make compared to their initial level and the conditions in which they study. The submitted information does not specify a specific calculation model, the amount of possible additional funds or the deadline for introducing such funding.

Sources: Focus