Malcolm Gladwell in The New Yorker:
One of the most important tools in contemporary educational research is “value added” analysis. It uses standardized test scores to look at how much the academic performance of students in a given teacher’s classroom changes between the beginning and the end of the school year. Suppose that Mrs. Brown and Mr. Smith both teach a classroom of third graders who score at the fiftieth percentile on math and reading tests on the first day of school, in September. When the students are retested, in June, Mrs. Brown’s class scores at the seventieth percentile, while Mr. Smith’s students have fallen to the fortieth percentile. That change in the students’ rankings, value-added theory says, is a meaningful indicator of how much more effective Mrs. Brown is as a teacher than Mr. Smith.
It’s only a crude measure, of course. A teacher is not solely responsible for how much is learned in a classroom, and not everything of value that a teacher imparts to his or her students can be captured on a standardized test. Nonetheless, if you follow Brown and Smith for three or four years, their effect on their students’ test scores starts to become predictable: with enough data, it is possible to identify who the very good teachers are and who the very poor teachers are. What’s more—and this is the finding that has galvanized the educational world—the difference between good teachers and poor teachers turns out to be vast.
Eric Hanushek, an economist at Stanford, estimates that the students of a very bad teacher will learn, on average, half a year’s worth of material in one school year. The students in the class of a very good teacher will learn a year and a half’s worth of material. That difference amounts to a year’s worth of learning in a single year. Teacher effects dwarf school effects: your child is actually better off in a “bad” school with an excellent teacher than in an excellent school with a bad teacher. Teacher effects are also much stronger than class-size effects. You’d have to cut the average class almost in half to get the same boost that you’d get if you switched from an average teacher to a teacher in the eighty-fifth percentile. And remember that a good teacher costs as much as an average one, whereas halving class size would require that you build twice as many classrooms and hire twice as many teachers.
More here.