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Incentive theory, or the "pull theory" of motivation, suggests that external rewards primarily drive behavior. Individuals are motivated to engage in activities when they anticipate a desirable outcome. This is why people often work hard for promotions or study intensively to achieve high grades. These incentives can be tangible, physical rewards such as money or promotions, or intangible, non-physical rewards like praise and social recognition.
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Updated: Jul 19, 2025

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Teaching and Incentives: Substitutes or Complements?

James Allen1,2,3, Arlete Mahumane4, James Riddell5

  • 1Department of Economics, University of Michigan.

Economics of Education Review
|August 10, 2023
PubMed
Summary
This summary is machine-generated.

Combining teaching with financial incentives significantly boosts COVID-19 knowledge in Mozambique. While teaching alone is most cost-effective, the combined approach shows lasting benefits, revealing unexpected complementarity.

Keywords:
AfricaCOVID-19Cost-effectivenessD90EducationI10I21LearningMozambiqueTeaching

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Area of Science:

  • Behavioral Economics
  • Public Health Interventions
  • Educational Psychology

Background:

  • Learning interventions are often supply- or demand-side.
  • Supply-side: teaching via targeted feedback.
  • Demand-side: financial incentives for learners.

Purpose of the Study:

  • To examine the interaction between supply (teaching) and demand (incentives) interventions.
  • To test whether these interventions are substitutes or complements.
  • To assess expert predictions against empirical findings.

Main Methods:

  • Randomized experiment with Mozambican adults.
  • Comparison of standalone teaching, standalone incentives, and combined treatments.
  • Measurement of COVID-19 knowledge test scores pre- and post-intervention.

Main Results:

  • Combined interventions showed greater complementarity than predicted by experts.
  • Combining teaching and incentives increased COVID-19 knowledge by 0.5 standard deviations.
  • Standalone teaching was the most cost-effective intervention.
  • Complementarity effects persisted for over nine months.

Conclusions:

  • Teaching and financial incentives can be complementary, not just substitutes.
  • Combined interventions offer significant, long-term improvements in health knowledge.
  • Intervention design should consider synergistic effects for optimal impact.