The I m pact of Good Educational Public Policy & School Quality - - PowerPoint PPT Presentation

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The I m pact of Good Educational Public Policy & School Quality - - PowerPoint PPT Presentation

2 1 st Century W orkforce Conference The I m pact of Good Educational Public Policy & School Quality Eric Hanushek Stanford University Plan of discussion Consider benefits and costs of investment in quality Benefits easier to


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2 1 st Century W orkforce Conference

The I m pact of Good Educational Public Policy & School Quality

Eric Hanushek

Stanford University

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Plan of discussion

Consider benefits and costs of investment in quality

Benefits easier to estimate Bound the costs of quality

Identify possible reforms

Class size reduction, salaries, spending Teacher quality changes

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Summary of results

Benefits of quality improvement large

  • Individual earnings and productivity
  • Aggregate effects through growth

Dimensions of reform

  • Magnitude of quality improvement
  • Speed of reform

Input approaches generally ineffective Quality improvements require substantial changes in teacher quality

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Earnings and productivity

Consistent impact of quality (test performance)

Earnings School attainment

U.S. results:

½ standard deviation perform ance → 6 percent higher annual earnings

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Aggregate growth

Quality very important Marginal effect

Other things: property rights, open product and labor markets, limited governmental intrusion

½ standard deviation national → ½ percent increase annual grow th

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Summary: Benefits from School Quality very large

Individuals and society gain significantly Can finance reform I F reform is effective

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Dimensions of Reform

Magnitude

Must focus on objectives Most discussions entirely on inputs

Speed

Cannot change schools instantly Must have long view

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Improved GDP with Moderately Strong Knowledge Improvement

0% 2% 4% 6% 8% 2005 2010 2015 2020 2025 2030 2035 2040 year percent additions to G DP 10-year reform 20-year reform 30-year reform

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Ineffectiveness of Resource Policies

Common approach – increase resources

Reduce class size Increase salaries Increase certification requirements for teachers

Substantial evidence that these do not work

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U.S. NAEP perform ance (17 year olds)

250 260 270 280 290 300 310 320 math reading science writing 1970 1980 1990 1999

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Public school resources, 1 9 6 0 - 2 0 0 0

$7,591 $5,124 $2,235

Spending/pupil

15 12 11

Median experience

56 50 24

% master’s degree

17.3 18.7 25.8

Pupil-teacher ratio

2000 1980 1960

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Washington Performance 8th Grade NAEP, 2003

281 276 Math 264 261 Reading WA US

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Washington Performance 8th Grade NAEP, 2003

285 287 281 276 Math 268 270 264 261 Reading WA US WA US white students

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Basic or Above Perform ance 8th Grade NAEP, 2003

72 67 Math 76 72 Reading WA US

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Basic or Above Perform ance 8th Grade NAEP, 2003

76 79 72 67 Math 80 82 76 72 Reading WA US WA US white students

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Resource evidence

Econometric analyses Experimental evidence (Project STAR)

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Importance of teachers

Total effects versus measured characteristics Consistent differences in teachers Magnitude (lower bound):

1 s.d. ( teacher) → 0 .1 2 s.d. ( student)

Other evidence:

good → bad = 1 grade level equivalent

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Annual Required Hiring Percentile for Moderately

Strong Improvement in Student Achievement

61.3% 55.7% 53.8% 55.5% 52.7% 51.8%

50% 55% 60% 65% 10-year 20-year 30-year Speed of reform

low teacher replacement high teacher replacement

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Uncertainty about exact incentives

Pure resource policy ineffective Rigidities in hiring/ retention Little direct analysis of incentives Alternatives

Accountability Choice

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Improved GDP with Moderately Strong Knowledge Improvement

0.0% 2.0% 4.0% 6.0% 8.0% 2005 2010 2015 2020 2025 2030 2035 2040 year percent additions to GDP 10-year reform 20-year reform 30-year reform typical education spending