Econ 301 Project 2

Education

BLS

2013

Education

• Sources – National Assessment of Educational Progress (NAEP)

• “Nation’s Report Card”

– Census • Educational Attainment

• Public School System Finances

• Issues in Education

– High School Completion • (# of graduates/# of students)

– Who represents “graduates”? Equivalency exam? > 4 years? Modified study?

– Who represents “students”? Those that started HS 4 years prior? Size of senior class?

• What is the study for? Diploma count? Workforce qualification? School performance?

• Beginning 2010/11 school year, No Child Left Behind legislation improved consistency

across states by requiring graduation rates be reported as: (# of students who graduate in four years with a HS diploma/ # of students who entered school 4 years prior).

Graduation Rates

High school graduation rates have increased since the 1960 across all races.

Cross-Country Comparison Math Scores

The mathematics achievement scores of eighth grade American students lag behind those of many other countries.

Canada

Australia

Germany

South Korea

Belgium

Poland

Average 8th Grade Mathematics Achievement Score: 2009

Ireland

Netherlands

U.K.

Japan

529

527

520

538

507

508

U.S. 502

508

522

514

539

Hungary 503

Subject Matter Proficiency National Assessment of Student Progress (NAEP)

Assessing Progress • U.S. has not been in the top scoring countries on any major assessment since the early 1990s • However:

• The U.S. has diverse student body each with unique challenges. • U.S. students typically progress to higher levels of education, skewing average scores down.

• Concerns with improvement • Grade inflation and teaching to the test. • Assessments may not adequately measure creativity, social responsibility, professionalism, and friendliness

(characteristics often inversely correlated with subject matter achievement).

Education

SAT Scores • Still falling, why?

• Simpsons Paradox: a relationship that appears in aggregated data disappears or reverses when broken into subgroups.

• A greater proportion of lower-scoring, mostly lower-income groups, have been taking the SAT.

Graduation Rates

High school graduation rates have increased since the 1940s.

Spending Per Student

Real spending per pupil in the U.S. has more than doubled since the mid-70s

Current expenditures, interest payments, and capital outlays per student in fall

enrollment in public elementary and secondary schools, by type of expenditure:

Selected years, 2000–01 through 2014–15

Spending Per Student

National Center for Educational Statistics

Cross-Country Comparison of Spending Per Student

Student-Teacher Ratios

Cautions Against Quick Conclusions • Greater Spending, Less Results?

• Non-instructional spending (e.g. janitors, secretaries, administration). • Instructional spending declined from 70% in 1960 to less than 50% by 2010.

• Special education spending (13% of students qualified in 2011).

• Smaller Classes, No Impact? • Special education classes skew the average figure lower.

• Lower Test Scores? • Less academically prepared students are now taking the exams.

• Poorer socioeconomic groups.

• ESL students.

• Higher Graduation Rates? • Education may not coincide with market demands.

• Social promotion & lowered standards.

The Public School Debate • Public School Monopoly

• Taxpayers pay regardless of use; justified by External Benefit theory. • Lack of competition increases costs and lower quality of product.

• Teacher Tenure • Difficult to terminate low performing teachers.

• Collective Bargaining • In most states teachers have relatively lucrative pensions. • “Rule of 85”

• Age + Years = 85 qualify for full pension. • On average receive 75% of salary.

• Last-in-first-out provisions protect seniority at the expense of younger teachers.

• Lack of Merit Pay • Pay based on education and experience.

• Evidence indicates teaching quality matters but without merit pay schools may not be able t to attract higher quality teachers.

• Little financial reward for improved performance.

Teacher Compensation

BLS Occ. Handbook 2015 Median

Hourly Wage Full-time equivalent High School Teachers $57,200 $38.23 $76,458.33 Jr. High School Teachers $55,860 $37.10 $74,208.33 Elementary School Teachers $54,550 $37.08 $74,166.67

Web Developers $30.37 Psychologists $33.42 Chemists $34.79 Detectives $36.89 Statisticians $38.12 Computer Programers $38.60 Civil Engineers $38.83 Chemical Engineers $46.02 Optomitrists $48.70

• Private Schools – Outperform public schools with less spending per student.

– Cherry Picking: Selecting students that are easier to educate leaving the remainder for the public schools.

• Students from higher socioeconomic households.

• Less students with physical and academic disabilities.

• Even after adjusting for these factors, private schools still outperform public schools.

• Charter Schools (public provision) – Public funded but have more discretion in administration.

– Cannot be religious based since publicly funded.

– Cannot charge students but may use non-price rationing such as lotteries for entry.

The Public School Debate

• School Vouchers (private provision) – Proponents:

• Parental choice.

• Competition among schools and teachers fuels quality improvements and lower costs.

• Greater diversity of students.

• Educational techniques cater to student specific needs.

• Greater financial accountability for school performance.

– Opponents: • High-income families with children in private schools benefit from an effective “tax refund”.

• Wealthier families have greater transportation options causing socioeconomic and racial imbalances to worsen.

• Funds are drained from low income areas toward higher income areas.

• Limits centralization of standards (private schools free to teach whatever they desire).

The Public School Debate

No Child Left Behind (2001) – Federal-led effort that requires all K-12 public schools receiving federal funding to

administer a state-wide standardized test annually to all students.

– Each state sets its own standards for math, reading, & science and determines “Adequate Yearly Progress” goals for each school.

– States produce report cards on each school and district and if required improvements are not made, the schools face decreased funding or other punishments.

– All teachers must be highly qualified (i.e. bachelors degree, subject matter competency, and teaching credential).

Common Core (2010) – State-led effort intended to provide more clarity and consistency with regard to

expected student learning outcomes across K-12 public schools in the U.S.

– 46 of 50 states have adopted the initiative.

– Standards: • Are internationally benchmarked for global competitiveness.

• Are college and career focused.

• Expect increased reasoning and problem solving skill-sets to ensure “deep conceptual comprehension” of the material.

• Argumentative and explanatory skill-set in non-mathematical disciplines.

Important Legislation in Public Education

Post-Secondary Education

College graduation rates have increased since the 1960 across all races.

College Completion – Time-frame matters

• Norway uses graduation rates within 10 years of starting program whereas U.S. uses 6 years.

• Among OECD countries the U.S. is low at 57.2% graduation rates for bachelor-seeking students graduating within 6 years.

– U.S ranks #1 in share of population with bachelor’s degrees.

– Demographics matter

• U.S admits a more diverse pool of students than many other countries lowering graduation rates and making our colleges appear deficient.

Post-Secondary Education

Post-Secondary Education College Stats • $471 Billion Annually • 21 million students • $22,429/student • Tuition, Room and Board have risen 629% since 1981 (overall CPI 131%)

Costs are higher than K-12 • Professors are more expensive than K-12 teachers. • Professors spend less time in the classroom (3-15 hours per week) and more time researching and

developing expertise in their field. • Libraries, equipment, and lab costs for research are substantially more expensive. • Subsidies increase demand relative to supply; justified by External Benefit theory.