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Parents began using the paychecks as progress reports, contacting teachers to find out why their kids' checks had gone up or down.
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Just like with the iPods that school district was giving away in another thread... it's not just about bribing the kids.
It's actually a nicely self-selecting group: the parents who don't want their kids to participate in such a bribery program are the parents who are already going to be doing a better job of raising their kids. The parents who think it's a great idea for their kid are the ones who aren't going to be doing a great job anyway, so for those kids it might very well be the most effective option.