Measuring the Impacts of Teachers I: Evaluating Bias in Teacher Value-Added Estimates

Are teachers' impacts on students' test scores (value-added) a good measure of their quality? One reason this question has sparked debate is disagreement about whether value-added (VA) measures provide unbiased estimates of teachers' causal impacts on student achievement. We test for bias in VA using previously unobserved parent characteristics and a quasi-experimental design based on changes in teaching staff. Using school district and tax records for more than one million children, we find that VA models which control for a student's prior test scores provide unbiased forecasts of teachers' impacts on student achievement. (JEL H75, I21, J24, J45)