I'm trying to measure the impact of teachers' performance on student outcomes. I'm not entirely sure how to do this however. As my dependent variables, I have the grades of the students, mapped onto a 1-10 scale.
I have a number of independent variables, including aspects about the students.
My concern is in how to incorporate the teachers into the regression. It would seem like the simplest way would be to introduce them as dummy variables, with a 1 representing they taught the student, and a 0 representing that they did not teach the student.
This seems problematic though, as the dataset has around 1000 teachers, and there are 600,000 students in the dataset. It seems that this would be far too many variables to regress on at once.
Do you have any advice in how I can incorporate the teachers' performance into my model?