In Ben's last post, he took a look at merit pay for teachers. Now, New York City is going to pioneer offering merit pay for students — offering kids cash prizes for academic achievement.

Last week, when the first rumors of the mayor's plan to introduce monetary "incentives" for strong school performance hit the newspapers, I hoped they would prove to be just rumors. But today the city announced a pilot version of the incentive program, in which families will receive cold, hard cash for getting kids to school, showing up at parent-teacher conferences, and applying for a library card. At the high school level, it looks like the money will go straight to teenagers who take the PSAT and Regents exams and who make progress toward graduating. The incentive schedule includes a $400 graduation bonus.

This program is just one of three privately funded initiatives that make up what the city is calling "Opportunity NYC" and billing as "the nation's first conditional cash transfer program." In addition to paying for school performance, Opportunity NYC includes financial incentives for adults who maintain health insurance and who hold down a job or enroll in a job training program. All of the programs will be launched this fall on a pilot basis — the education program will be open only to families living in one of six neighborhoods whose income is below 130 percent of the poverty level and who have at least one child in grade 4, 7, or 9. Schools can also volunteer to participate in a trial of a program that will pay students for high scores on the interim assessments that all schools are supposed to give next year.

These programs represent a major achievement for Roland Fryer, the Harvard economics professor who has spent his career (short so far; he is just 30 years old) investigating whether incentives can convince people to change their environment. A fascinating 2005 New York Times Magazine cover story about Fryer suggested that DOE officials were already interested in his plan, but that he was having a hard time selling it to principals, who worried that paying kids for test scores would send the message that learning itself is an insufficient incentive. Last month, Fryer pitched his plan in a letter to principals of empowerment schools. I'm curious what has changed to get principals on board now.

While I'm always eager to hear about innovative strategies to motivate students and their families, the notion of exchanging cash for school performance just doesn't sit right with me. I wonder whether the incentives are large enough to persuade people to improve their behavior, or whether some families will just be rewarded for what they are already doing well. I also wonder, as others have, whether cash incentives will make tests even more stressful for kids than they already are. These are probably questions that Roland Fryer is eager to answer — I just wish it weren't the city's kids and their families who have to be his test subjects.