Answer: Based on the studies I have read, the answer is it depends.
Explanation: Some studies have shown that monetary incentives can improve performance on reading tests, while other studies have shown no effect or even a negative effect.
One study that found a positive effect of monetary incentives was conducted by Fryer (2011). In this study, 2nd-, 4th-, 7th-, and 9th-grade students from three typically low-performing urban school districts were randomly assigned to one of three groups: a control group, a group that was offered $5 for each point they scored above their baseline score on a reading test, and a group that was offered $10 for each point they scored above their baseline score. The students in the two incentivized groups scored significantly higher on the reading test than the students in the control group.
Another study that found a positive effect of monetary incentives was conducted by O'Neil et al. (1995). In this study, college students were randomly assigned to one of two groups: a control group and a group that was offered $5 for each correct answer they got on a reading comprehension test. The students in the incentivized group scored significantly higher on the reading comprehension test than the students in the control group.
However, not all studies have found a positive effect of monetary incentives. For example, a study by Levitt et al. (2011) found that monetary incentives had no effect on the performance of 12th-grade students on a reading assessment.
The effect of monetary incentives on reading test performance may depend on a number of factors, such as the amount of the incentive, the way the incentive is structured, and the students' motivation.
In general, it seems that monetary incentives can be an effective way to improve reading test performance, but the effect is not always consistent. More research is needed to determine the optimal way to use monetary incentives to improve reading test performance.
Here are some additional factors that may affect the effectiveness of monetary incentives:
The students' age: Younger students may be more motivated by monetary incentives than older students.
The students' prior reading skills: Students with stronger prior reading skills may be less motivated by monetary incentives.
The students' interest in the reading material: Students who are more interested in the reading material may be more motivated to perform well on the reading test, even without a monetary incentive.
The way the incentive is structured: The incentive should be structured in a way that is clear and achievable. The students should also understand how the incentive will be awarded.
The students' perception of the incentive: The students should believe that the incentive is fair and that they have a chance of winning it.
If you are considering using monetary incentives to improve reading test performance, it is important to consider all of these factors. You should also experiment with different amounts of the incentive and different ways of structuring the incentive to see what works best for your students.