This article introduces the 'Symposium on Primary and Secondary Education.' It points out that considerable controversy surrounds the issues treated by the articles in the symposium: the effect of the level of resources invested in education on student outcomes, and the educational financing structure that would optimize desirable outcomes of the system, including allocative and productive efficiency and equity. Given rising wage inequality in the labor market associated with increasing demands for skill, concerns over slow U.S. productivity growth, and burgeoning public school enrollments, resolving these issues has become increasingly important. Copyright 1996 by American Economic Association.
Many believe that American education can only be improved with a sizable infusion of new resources into the nation's schools. Others find little evidence that large increases in spending lead to improvements in educational performance. Do additional school resources actually make any difference? The evidence on this question offers a striking paradox. Many analysts have found that extra school resources play a negligible role in improving student achievement while children are in school. Yet many economists have gathered data showing that students who attend well-endowed schools grow up to enjoy better job market success than children whose education takes place in schools where resources are limited. For example, children who attend schools with a lower pupil-teacher ratio and a better educated teaching staff appear to earn higher wages as adults than children who attend poorer schools. This book, which grew out of a Brookings conference, brings together scholars from a variety of disciplines to discuss the evidence on the link between school resources and educational and economic outcomes. In a lively exchange of views, they debate whether additional spending can improve the performance of the nation's schools. In addition to editor Gary Burtless, the contributors include Eric Hanushek, University of Rochester; James Heckman, University of Chicago; Julian Betts, University of California, San Diego; Richard Murnane, Harvard University; Larry Hedges, University of Chicago; and Christopher Jencks, Northwestern University.
This paper reviews and interprets the literature on the effects of school resources on students' eventual earnings and educational attainment. In addition, new evidence is presented on the impact of the great disparity in school resources between black and white students in North and South Carolina that existed in the first half of the twentieth century, and the subsequent narrowing of these resource disparities. Following birth cohorts over time, gaps in earnings and educational attainment for blacks and whites in the Carolinas tend to mirror the gaps in school resources.
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In recent years, public and professional interest in schools has been heightened by a spate of reports, many of them critical of current school policy. these policy documents have added to persistent and long-standing concerns about the cost, effectiveness, and fairness of the current school structure, and have made schooling once again a serious public issue. As in the past, however, any renewed interest in education is likely to be short-lived, doomed to dissipate as frustration over the inability of policy to improve school practice sets in. This frustration about school policy relates to knowledge about the educational production process and in turn to underlying research on schools. Although the educational process has been extensively researched, clear policy prescriptions flowing from this research have been difficult to derive.
Historically, most attention in public programs has been given to the resources devoted to the activity, and resources have been used to index both commitment and quality. Education differs from other areas of public expenditure because direct measures of outcomes are available, making it is possible to consider results and, by implication, to consider the efficiency of provision. Early interpretations of the evidence, emanating from popular interpretations of the Coleman Report that ''schools do not make a difference'', are incorrect, but the basic evidence behind the statement suggests serious performance problems of government supply, because purchased inputs to schools are not closely related to outcomes. This paper reviews that evidence along with providing an evaluation of the various controversial aspects including issues of causality, consumer behavior, and estimation approaches. Two detailed policy areas are discussed in terms of the evidence on performance: public versus private provision and the financing of schools.
In an effort to improve the quality of schools, governments around the world have dramatically increased the resources devoted to them. By concentrating on inputs and ignoring the incentives within schools, the resources have yielded little in the way of general improvement in student achievement. This paper provides a review of the US and international evidence on the effectiveness of such input policies. It then contrasts the impact of resources with that of variations in teacher quality that are not systematically related to school resources. Finally, alternative performance incentive policies are described.
An 8-year study of academic achievement, student performance, and education costs in rural northeastern Brazil investigated the presumption that students automatically perform better when more school resources are provided. Two main topics were examined: the success of EDURURAL, an educational intervention project in rural Brazil sponsored by the World Bank; and the educational policies that could improve school performance and academic achievement within a fixed budget. Findings indicate that selectively investing in school resources improves educational performance, boosts promotion rates, and lowers grade repetition. The reduction in grade repetition saves enough in operating costs to offset the original investment in added resources. Other findings emphasize: (1) the fragility of the schools studies; (2) the educational value of school resources and school organization; and (3) the importance of highly skilled teachers for student achievement (and the impossibility of measuring the quality of specific teachers). Cost-saving guides are discussed that can be used by countries throughout the developing world to improve their educational policies. Eight chapters are divided into three sections on background, research findings, and significance. Appendices describe the tests used, their reliability, and results; list and describe statistics for variables used in analytic models; and present many statistical tables. Additional data tables are interspersed throughout the book. Contains 171 references and an index. (KS)
This paper examines evidence on the effect of class size on student achievement. First, it is shown that results of quantitative summaries of the literature, such as Hanushek (1997), depend critically on whether studies are accorded equal weight. When studies are given equal weight, resources are systematically related to student achievement. When weights are in proportion to their number of estimates, resources and achievements are not systematically related. Second, a cost-benefit analysis of class size reduction is performed. Results of the Tennessee STAR class-size experiment suggest that the internal rate of return from reducing class size from 22 to 15 students is around 6%.
This is a thorough analysis of curriculum diversification in secondary education in Colombia and Tanzania. Through the use of tracer surveys and rigorous economic analysis, the authors consider access, internal efficiency, external efficiency and cost-effectiveness.
The Symposium on School Quality and Educational Outcomes contains several papers attempting to resolve conflicts in the literature on the effect of school inputs on achievement and earnings. The articles replicate past studies, reconcile their results, and/or examine their robustness to specification. The papers identify several key issues which account for major differences in findings, including whether (1) school input effects have declined secularly, (2) the analysis is conducted at the aggregate state level or the disaggregate school district or school level, and (3) family-specific effects such as those captured in sibling studies are adequately controlled.
This paper considers methods for modelling the production function for cognitive achievement in a way that captures theoretical notions that child development is a cumulative process depending on the history of family and school inputs and on innate ability. It develops a general modelling framework that accommodates many of the estimating equations used in the literatures. It considers different ways of addressing data limitations, and it makes precise the identifying assumptions needed to justify alternative approaches. Commonly used specifications are shown to place restrictive assumptions on the production technology. Ways of testing modelling assumptions and of relaxing them are discussed.
This paper reviews empirical evidence, especially from Europe, on how education and training policies can be designed to advance both efficiency and equity. Returns to educational investments tend to decrease over the life cycle. Moreover, they seem to be highest for children from disadvantaged families at early stages and for the well-off at late stages of the life cycle. This creates complementarities between efficiency and equity at early stages and trade-offs at late stages. The paper goes on to discuss specific policies for efficiency and equity at each educational stage, ranging from early childhood education and schools over vocational and higher education to training and lifelong learning. The available evidence suggests that both efficiency and equity can be enhanced by output-oriented reforms properly designed to each stage, where the state generally sets a regulatory framework that ensures accountability and funding and uses the forces of choice and competition to deliver best results. Designed this way, education and training systems can advance efficiency and equity at the same time.
This book presents a thorough economic analysis of both the determinants and the consequences of international differences in schooling quality. It is shown that cross-country differences in quality-adjusted human capital can account for a substantial part of the international variation in economic development. However, large increases in per-student spending over recent decades were not matched by increases in student achievement in most countries. In a simple principal-agent model, the book stresses the importance of institutional features of the schooling system such as central examinations, school autonomy, and private-sector competition. Microeconometric estimations based on data for more than a quarter of a million students reveal that international differences in these institutions, rather than differences in resources, can explain the large international differences in schooling quality.
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