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Posts Tagged ‘Education’

In June 2017, I shared an image and made the bold claim that it told us everything we needed to know about government.

In July 2017, I shared a story and similarly asserted that it told us everything we needed to know about government.

In that grand tradition of rhetorical exaggeration, here’s a court case that tells us everything we need to know about government.

…a lawsuit arguing that Detroit students were being denied an education had been dismissed. …With the help of a public interest law firm, a handful of Detroit students charged in federal court that educational officials in Michigan — including Gov. Rick Snyder — denied them access to an education of any quality. …Student cannot be expected to learn when they are simply “warehoused for seven hours a day” in “an unsafe, degrading, and chaotic environment” that is a school “in name only.” …almost 99 percent of the students are unable to achieve proficiency in state-mandated subjects. Last year, the state moved for dismissal, arguing that the 14th Amendment contains no reference to literacy. …U.S. District Judge Stephen Murphy III agreed with the state. Literacy is important, the judge noted. But students enjoy no right to access to being taught literacy. All the state has to do is make sure schools run. If they are unable to educate their students, that’s a shame, but court rulings have not established that “access to literacy” is “a fundamental right.”

I’m not a lawyer, so maybe the judge made the right decision. Indeed, I suspect it probably was the right outcome since a decision in favor of the suit may have resulted in some sort of judicial mandate to squander more money on failed government schools. And we have lots of evidence that additional funding would mean throwing good money after bad.

But I still feel great sympathy for the students and their parents. They are stuck with rotten schools that cost a lot of money.

They have been betrayed by government incompetence. Both Thomas Sowell and Walter Williams have explained how the system is rigged to benefit teacher unions rather than kids.

And even though most of the victimized children are minorities, the NAACP sides with the unions. Shame. The failed government school monopoly serves the interests of insiders, not students.

The only solution is school choice, as explained in this video.

P.S. Needless to say, the federal government shouldn’t play a role. Bush’s no-bureaucrat-left-behind plan didn’t work, and neither did Obama’s Common Core boondoggle. The best thing that could happen in Washington would be the abolition of the Department of Education.

P.P.S. There’s a lot we could learn about school choice and private schooling from SwedenChile, India, Canada, and the Netherlands.

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Canada is a surprisingly pro-market country, with relatively sensible policies involving spending restraint, welfare reform, corporate tax reform, bank bailoutsregulatory budgeting, the tax treatment of saving, and privatization of air traffic control.

And we should add education policy to the mix.

There are four comparatively admirable features of Canadian schooling. First, as explained by the Vancouver-based Fraser Institute, the central government has no role.

…the Canadian educational system is much more decentralized than in the United States. One of the starkest illustrations of the different models at work between the two countries, is the fact that Canada has no federal role, no federal ministry or department, and no federal cabinet position for K-12 education at all. …in Canada, this vital aspect of society is under the exclusive control and authority of the provinces. Furthermore, in many provinces the delivery responsibilities are decentralized to local and regional boards of education.

Too bad we can’t say the same in the United States.

Second, Canadian taxpayers don’t spend as much money.

Adjusting for differences in currencies, in 2010 the United States (public and private) spent $11,826 per student on K-12 education. In contrast, the comparable figure for Canada was only $9,774… the United States spent about one-fifth (21%) more per student in 2010 for primary and secondary education, and…that difference arises from the higher level of government spending.

The sad news is that the United States has the ignoble distinction of having the highest level of per-student spending. Yet we certainly don’t get better results.

Especially compared to Canadians, which is the third admirable feature north of the border.

…on most international tests, Canada performs at least as well as, and often much better than, the United States. For example, the OECD administers the Programme for International Student Assessment (PISA), which in 2006 gave U.S. students a science score of 489, compared to Canada’s 534 and the OECD average of 500.

So why is Canada getting better results with less money?

There are probably several answers, but one reason is a Canadian version of school vouchers, which is the fourth positive attribute of the Canadian education system.

Five provinces in Canada make provision for funding qualifying independent schools. These are Quebec and the four western provinces: Manitoba, Saskatchewan, Alberta, and British Columbia. …Funding percentages vary across the five funding provinces. None offer funding toward the purchase or construction of capital assets. Funding is generally calculated as a percentage of the amount given to the local school district for the operational (recurrent) expenses of educating a student. Funding is generally paid directly to the independent school on a per-student basis.

The money follows the students, which means parents in the more enlightened provinces have a real choice.

Interestingly, even researchers from the Canadian government confirm that kids in private schools receive superior education.

Private high school students score significantly higher than public high school students on reading, mathematics, and science assessments at age 15, and have higher levels of educational attainment by age 23. …In the reading test, private school students outperformed their public school counterparts by 0.081 log points, or about 8% (Table 5). The gaps were slightly larger in the mathematics and science tests. By age 23, 99% of private school students had graduated from high school, about 3 percentage points above the figure for public school students. The private school advantage was more evident in postsecondary outcomes (measured at age 23)—postsecondary attendance (11.6 percentage points), university attendance (17.8 percentage points), postsecondary graduation (16.2 percentage points), university graduation (13.9 percentage points), and graduate or professional studies (8.1 percentage points).

Private schools produced better results even after adjusting for the quality of students.

…private high school attendance was positively associated with postsecondary attendance and graduation outcomes. Specifically, postsecondary attendance and graduation outcomes were 5- to 9-percentage-points higher among private high school students. …It is well documented that private high school students generally outperform their public school counterparts in the academic arena.

Parents seems to recognize where they can get the best education for their kids. The Fraser Institute tracks enrollment patterns and an ever-increasing number of children are attending independent schools.

So what’s the bottom line? Simply that what we see in Canada augments evidence from SwedenChile, and the Netherlands about the benefits of breaking up state-run education monopolies. And we can give India honorary membership in this club since so many parents have opted for private schooling even though there’s no choice program.

P.S. Canada used to have the world’s 5th-freest economy, but it has dropped to the 11th-freest. Still a relatively good score, but Prime Minister Justin Trudeau has the country moving in the wrong direction.

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I received my Ph.D. from George Mason University in Fairfax, VA, and I have very fond memories of that experience, including interactions with great economists such as James Buchanan and Walter Williams.

But not everyone has favorable views of GMU’s market-friendly program. There’s a group, UnKoch My Campus, that pretends to be horrified that the school has attracted contributions from philanthropists such as Charles Koch and David Koch.

In a column for the Washington Post, Steven Pearlstein opines about the ostensible controversy.

Thanks to a group of courageous and persistent students, George Mason University was recently forced to acknowledge that it had accepted millions of dollars from billionaire Charles Koch and other conservatives under arrangements that gave the donors input into several appointments at the university’s famously libertarian economics department. These arrangements violated traditional norms meant to insulate academic institutions from donor influence… The story fits neatly into the liberal narrative that the Koch brothers, Charles and David, have used their inherited oil wealth to fund the development of radical economic theories at Koch-funded universities.

At the risk of digressing before I even get started, I have to correct Pearlstein’s snide comment about “inherited oil wealth.”

The Koch brothers did inherit a valuable company, but they are not dilettantes with trust funds. They took a successful company and built it into an extremely successful firm. I wouldn’t be surprised if more than 90 percent of any contributions they make are a result of value they created.

Also, Charles Koch is a libertarian rather than a conservative.

Anyhow, back to our regularly scheduled program.

Pearlstein may have taken a cheap shot at the Kochs, but at least he doesn’t blindly parrot the leftist narrative.

…at Mason, the story is more complicated… I’ve been a professor at Mason. …I’m not a member of the economics department — they wouldn’t have me. But over the years, I’ve gotten to know and admire many of the economists there. For the most part, I have found them to be good economists and teachers, incredibly smart, intellectually honest and curious. …In the case of Mason’s economics department, the faculty have driven the donor relationships. In most instances, it was the faculty who approached and solicited Koch and other donors with specific projects in mind, not the other way around. …Our economics department is not libertarian and conservative because it is funded by Koch and his friends; they fund our economics department because its faculty is — and always has been — overwhelmingly conservative and libertarian. …rules and norms of university governance give faculty the power to hire people who think like they do. …Sorting by political or academic ideology is a naturally occurring phenomenon at universities.

Pearlstein suggests that university administrators should insist on more intellectual diversity.

The challenge is figuring out what to do about it. …It would have been better if Mason’s presidents and provosts had insisted on more ideological diversity in the law school and the economics department.

Perhaps there’s merit to that idea.

But if that’s Pearlstein’s goal, he should first focus on other departments at other schools. Because there’s an overwhelming bias in the other direction when looking at America’s system of higher education.

Here’s a report from Inside Higher Ed about some academic research by Mitchell Langbert, Anthony Quain, and Daniel Klein.

A new study…, published online by Econ Journal Watch, considered voter registration data for faculty members at 40 leading U.S. institutions in economics, history, communications, law and psychology. Of 7,243 professors total, about half are registered. Some 3,623 are Democrats while just 314 are Republicans. Economists are the most mixed group, with a ratio of 4.5 Democrats for every Republican. Historians as a group are the most lopsided, at 33.5 to one… There are also regional effects, with ratios highest in New England. …Women are much more likely to be registered Democrats, at 24.8 to one. Among men, the ratio is nine to one. …Brown University has the highest ratio for all five disciplines combined, at 60 to one, Democrat to Republican. It’s followed by Boston University (40 to one), Johns Hopkins University and the University of Rochester (both 35 to one), and Northeastern University (33 to one). The lowest ratio — that is, the most even mix of registered Democrats and Republicans — is at Pepperdine University, at 1.2 registered Democrats for every Republican. Case Western Reserve University is next, at 3.1 to one.

Here’s a chart from the report showing that economics is the most balanced discipline, but even in that field Democrats outnumber Republicans by a 4.5:1 margin.

Professor Langbert has some new research on this topic.

And, as pointed out in this report, the problem isn’t getting better.

An extensive study of 8,688 tenure-track professors at 51 of the 66 top-ranked liberal arts colleges in the U.S. published by the National Association of Scholars found that the ratio of faculty members registered as Democrats compared to those registered Republican is now a stunning 10.4 to 1. If two military colleges that are technically described as “liberal arts colleges” are removed from the calculations, the ratio is 12.7 to 1. …nearly 40% of the colleges in the study had zero faculty members who were registered Republican. Not a single one. Nearly 80% of the 51 colleges had so few Republican faculty members that they were statistically insignificant. …this trend toward an increasingly uniformly left-leaning faculty has spanned decades, both in the United States and Britain. “More than a decade ago, Stanley Rothman and colleagues provided evidence that while 39 percent of the professoriate on average described itself as Left in 1984, 72 percent did so in 1999,” Langbert writes. “They find a national average D:R ratio of 4.5:1.

Wow. University professors may be even further to the left than journalists.

Let’s circle back to the controversy at George Mason University.

The Wall Street Journal recently editorialized on the faux controversy.

Progressives dominate all but a few corners of American academia, but apparently they want it all. Witness the political and media assault on George Mason University, an island of intellectual diversity in Northern Virginia… an outfit called UnKoch My Campus…claims that donors like Charles and David Koch inappropriately influence university decisions. The demand is for “transparency” but the real goal is to silence conservative views. …Among the horrors supposedly uncovered by UnKoch is that one condition of these gifts was that George Mason rename its law school after Antonin Scalia. …The truth is that the naming request and decision went through normal university channels that included a vote by the university’s Board of Visitors, as well as the State Council on Higher Education for Virginia. …Donors are committing no crime in trying to judge if their philanthropy is fulfilling its purpose. The Kochs, God bless them, believe in supporting academics who believe in the principles of liberty and market economics. …Researchers from Stanford, Harvard and the University of Chicago Law School found last year that only 15% of American law school professors are conservative. We’re surprised it’s that many.

My two cents is that universities – either faculty and/or administrators – should be free to hire whoever they want under whatever rules they want. And students (or their parents) should be able to say no to schools that go overboard.

But here’s the catch. I don’t want to pay for any of it, either directly or via my kids. Let’s get rid of federal handouts for higher education.

The good news is that the no-subsidy approach also would reduce tuition costs since there no longer would be a third-party-payer problem.

Sounds like a win-win scenario.

P.S. My dissertation topic at GMU was Australia’s private retirement system, which was a clever decision on my part. Nobody in the United States at the time knew anything about the Aussie approach, which meant it was a) comparatively easy to make a contribution to the literature, and b) the professors on my committee didn’t know enough about the topic to nit-pick. Best of all worlds.

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Education spending and teacher pay has become a big issue in certain states.

Unfortunately, not for the right reason. In an ideal world, taxpayers would be demanding systemic reform because government schools are getting record amounts of money (higher than any other nation on a per-student basis) while producing sub-par results.

Instead, we live in a surreal parallel universe where teacher unions are pushing a narrative that taxpayers should cough up more money because teachers supposedly are underpaid.

Let’s look at the data.

An article in City Journal debunks the claim that teachers are underpaid.

…protests across the country have reinforced the perception that public school teachers are dramatically underpaid. They’re not: the average teacher already enjoys market-level wages plus retirement benefits vastly exceeding those of private-sector workers. Across-the-board salary increases, such as those enacted in Arizona, West Virginia, and Kentucky, are the wrong solution to a non-problem. …At the lowest skill levels—a GS-6 on the federal scale—teachers earn salaries about 26 percent higher than similar white-collar workers. …The average public school teaching position rated an 8.8 on the federal GS scale. After adjustment to reflect the time that teachers work outside the formal school day, the BLS data show that public school teachers on average receive salaries about 8 percent above similar private-sector jobs. …Data from the Survey of Income and Program Participation show that teachers who change to non-teaching jobs take an average salary cut of about 3 percent. Studies using administrative records in Florida, Missouri, Georgia, and Montana showed similar results. …public-employee retirement and health benefits are bleeding dry state and local budgets. Neither the public nor teachers fully appreciates the costs of these programs. We forget the value of benefits when considering how teacher pay compares with private-sector work.

And keep in mind those lavish pensions are woefully underfunded, so taxpayers are paying too much now and they’ll have to pay even more in the future.

But I think the key factoid from the above article is that teachers take a pay cut, on average, when they leave the profession. Along with the “JOLTS” data, that’s real-world evidence that teachers are getting paid more than counterparts in the economy’s productive sector.

Allysia Finley of the Wall Street Journal also punctures the false claims of the union bosses.

Teachers unions… They’re using misleading statistics… They conflate school funding and state education spending. In Oklahoma, unions proclaimed that per pupil school spending fell by 28.2% over the past decade. That refers to the inflation-adjusted state’s general funding formula. But total per pupil outlays increased by 16% in nominal terms between 2006 and 2016… They use elevated spending baselines. Teachers unions nearly always compare school spending and teacher salaries today with peak levels before the great recession, which were inflated like housing prices. Between 2000 and 2009, average per pupil spending across the country increased 52%…per pupil spending ticked up by 7.5% between 2012 and 2015. School spending growth…increased faster than the consumer price index. …They don’t account for other forms of compensation. Since 2000, per pupil spending on employee benefits has doubled. …pensions and health benefits are the fastest-growing expenses for many school districts, and most of the money goes to retired teachers. …the unions are lying with statistics.

In a column for the Denver Post, a parent showed that his state’s teachers are getting above-average compensation.

Teachers are…mostly paid via a union “salary schedule,” meaning they get pay raises based on only two factors: the number of college degrees and certificates they earn, and how many years they’ve been on the job. That makes a pretty lousy incentive structure… We keep hearing Colorado is 49th in the country for educational spending. That lie is repeated so often it becomes legend. Funding for Colorado schools are split between the local school district and the state. So, if you compare only the state funding part to states that have no local match, yep, ours looks low. But when you look at total funding, which can be counted in different ways, the picture doesn’t look so dire. …According to the Colorado Department of Education, the average salary for teachers here is $52,728. But that’s only one piece of the compensation. The school year is about 180 days, or 36 weeks. So, the pay is $1,465 for every week a teacher is teaching. Vacation time? Well, 52 weeks in a year, minus 36 weeks in the classroom, that’s 16 weeks off, roughly 4 months! Compare that to someone who only gets 2 weeks off but still gets paid $1,465 a week when working, that’s the equivalent of $73,233. And let’s count the present-cost value of their retirement benefits. …Not bad for a system where you can retire at 58.

Let’s close with some excerpts from Jason Riley’s column in the Wall Street Journal.

The nation’s K-12 schools are…turning into hotbeds of political activism. …teachers are demanding higher pay, better benefits and more education funding overall. …The American Federation of Teachers and the National Education Association have thousands of state and local affiliates. They are among the richest and best-organized pressure groups in the country. And they are on a roll. That’s good news for their members but not necessarily for children, parents and taxpayers. …Teachers unions support work rules that prevent the most capable teachers from being sent to low-performing schools, that shield teachers from meaningful evaluations, and that require instructors to be laid off based on seniority instead of performance. …those rules do nothing to address the needs of students. …politicians love to highlight education outlays. It helps them win votes and ward off union agitators. But the connection between school spending and educational outcomes is tenuous. …total spending per pupil at the state level rose, on average, by an inflation-adjusted 18%. During this period, it fell in Arizona… Yet on 2015 federal standardized exams, Arizona made more progress than any other state. New York, by contrast, boasts the highest spending per pupil and teacher pay in the country, but you wouldn’t know it from the test results.

For what it’s worth, the final few sentences in the above excerpt should be main issue being discussed in state capitals. Lawmakers should be asking why more and more money never produces better outcomes.

But that’s really not the problem. It’s the symptom of the problem.

Our primary challenge in education is that we rely on government monopolies that are captured by special interests. We need school choice so that competitive forces can be unleashed to generate better results. There’s strong evidence that choice produces good outcomes in the limited instances where it is allowed in the United States.

And in that kind of system, we may actually wind up with better teachers that are paid just as much. Or maybe even more.

P.S. There’s also strong evidence for school choice from nations such as SwedenChile, and the Netherlands.

P.P.S. Needless to say, eliminating the Department of Education is part of the solution.

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I wrote yesterday about the global evidence showing that more money does not improve the lackluster performance of government schools.

Those results are not surprising because we see the same thing in the United States. More money is good for the education bureaucracy, but it doesn’t lead to better student outcomes.

Now let’s focus on the solution to this problem. Simply stated, we need to break up the government education monopoly and unleash market forces.

Previous columns have looked at the success of school choice in SwedenChile, and the Netherlands.

Now let’s look at India, another country where private education has experienced amazing growth. I’m actually in that country for some speeches on regulatory reform (specifically, how India can improve its Doing Business score) and I’ve taken advantage of this situation to learn about the amazing developments in education.

We’ll start with some excerpts from a remarkable story in the Hindustan Times.

Between 2010-11 and 2015-16, student enrollment in government schools across 20 Indian states fell by 13 million, while private schools acquired 17.5 million new students, according to a new study that offers insights into India’s public-school education crisis. Average enrollment in government schools–where teachers are paid, on average, salaries that are four times those in China–declined from 122 to 108 students per school over five years, while it rose from 202 to 208 in private schools… Why are students opting out of India’s government schools, which educate the poorest and most vulnerable students until the age of 14 for free, and migrating to fee-charging private institutions in such large numbers? …private schools offer better value for money and better teaching than government schools.

Yet you won’t be surprised to learn that teachers in the government schools are lavishly compensated.

India’s government teachers earn more than…their counterparts in private schools… Teacher salaries in of teachers in Uttar Pradesh are four to five times India’s per capita gross domestic product (GDP) and more than 15 times the state’s, according to a 2013 analysis by Amartya Sen and Jean Dreze. This is much higher than the salaries paid to teachers in OECD countries and India’s neighbours.

Much of the data in that story was taken from a 2017 study published by a German think tank.

Here are some of the other findings from that report.

Official data show a steep growth of private schooling and a corresponding rapid shrinkage in the size of the government school sector in India, suggesting parental abandonment of government schools. …affordability is an important factor behind the migration towards and growth of private schools. The main reason for the very low fee levels in private schools is their lower teacher salaries, which the data show to be a small fraction of the salaries paid in government schools; this is possible because private schools pay the market-clearing wage…whereas government schools pay bureaucratically determined minimum-wages. Private schools’ substantially lower per-student-cost combined with their students’ modestly higher learning achievement levels, means that they are significantly more cost-effective than government schools.

The study is filled with extensive data.

But rather than quote long passages, here are two charts that caught my eye. First, we see better performance in private schools.

Given these impressive results, the logical response would be for India to scrap government schools and adopt a nationwide system of school choice.

But there’s a very powerful interest group standing in the way. As you can see from this second chart, government teachers are grossly overpaid and they will fight to the death to maintain the status quo.

Now let’s look at some of the findings from a report prepared by Ernst & Young on elementary and secondary education in India.

Once again, we see that parents are voting with their money to send their kids to private schools. Why? Because even though government schools are “free,” parents actually want their kids to get a good education.

…one of the most striking trends in Indian school education is the increase of private sector participation with an estimated 3 lakh private schools with 40% of the total student enrollment. Private enrollment in elementary schools is approximately 35% and over 50% at the secondary level. …private schools deliver higher quality education as gauged by educational outcomes such as performance on board exams and evidence from standardized assessments.

And here are some charts from the report, starting with a look at the share of kids in private schools.

And here’s some additional evidence that private schools generate better student outcomes.

What makes these results especially amazing is that the government has created all sorts of barriers to private schools.

I wrote about this in 2013, but the E&Y report quantifies how politicians and bureaucrats are trying to stifle competition.

Let’s take a look at some more research.

The Centre for Civil Society also has a must-read report on private education in India.

We’ll start with an excerpt that reinforces the fact that parents are voting with their scarce funds because they want a better future for their children.

Private fee charging schools are loved and loathed in equal measure in India: loved in the sense of being sought after by parents for their children’s education and often reviled by the press/ public/ authorities… The emptying of government schools…is largely the result of an exodus of students from government schools and migration toward private schools… The evidence suggests that most private schools in India can be considered ‘low fee’ in the precise sense that their fee is below the government’s… This evidence discredits the oft-repeated belief that much of private schooling in India is elite and exclusive.

Here’s data showing that the private schools cost less.

And here’s data showing that private schools deliver better results.

Finally, let’s look at a study by the World Bank that measures inputs and outputs to determine “value for money” (VFM).

PPE in MP government school system is Rs 9384 per annum and in private schools Rs 3700 per annum. Thus, government schools’ PPE is 2.5 times private schools’ PPE. However, the learning units are higher in private schools: 58% of private school students and 28% of government students of class 5 could read a class 2 level text in 2014-15. Thus government schools’ learning output is just about half that in private schools. Putting the output and expenditure items together, we find that the cost per unit of achievement is Rs 338 in government schools and Rs 63 in private schools, implying that private schools are 5.3 times as cost effective as public schools, or that government schools are one fifth as efficient in producing output as private schools. …When home background is strictly controlled for, the raw public-private learning gap greatly falls but is usually not eliminated. … if only 25% of the raw public-private achievement gap of MP is attributed to superior private school quality (e.g., lower teacher absence rates), then private schools are 3.25 more efficient than government schools, rather than 5.3 times. …In summary, there is very low VFM from government expenditure on education, in terms of producing the valued outcome of ‘learning’ among students. The private schooling sector gets significantly higher VFM.

And here are a couple of visuals from the report.

We’ll start with a look at enrollment patterns (a “lakh” = 100,000), further confirming that an ever-growing number of parents would rather pay for a private school than send their kids to a “free” government school.

And here’s some data starkly showing how government teachers are vastly overpaid.

All of which reinforces the “value for money” argument that the private schools get far more bang for the buck.

Let’s conclude with a video. One of the world’s experts on private education in the developing world is James Tooley and his interest was triggered by what he saw in India.

Here he discusses developments in India and other developing nations.

P.S. For those interested in more information about India, I wrote last year about how excessive government is stifling the nation’s economy. Indeed, the country is ranked a lowly #95 in the latest iteration of Economic Freedom of the World. This is very unfortunate because India should be a rich country. Indian-Americans, for instance, are the most successful immigrant group in America.

P.P.S. But it will be hard for Indians in India to achieve similar success since the government keeps imposing bad policies such as “demonetization.”

P.P.P.S. India is also home to the most perverse example of how handouts encourage bad behavior.

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I’ve written several times about how dumping more money into government schools is not a recipe for improved education.

Indeed, I would argue that this chart is the most powerful image I’ve ever seen. More and more money gets plowed into the system (even after adjusting for inflation!), but the only effect is that school systems hired more bureaucrats.

There hasn’t been any positive impact on student test scores.

It’s especially depressing when you compare the United States with other developed nations. We spend more than other countries, on a per-student basis, yet our test scores are below average.

Politicians periodically admit there is a problem, but their solutions – such as Bush’s no-bureaucrat-left-behind scheme and Obama’s common-core boondoggle – simply squander money and rearrange the deck chairs on the Titanic.

Let’s examine whether this pattern is true in other nations. I already shared some research showing that big spending increases in Indonesia didn’t have a positive impact.

Now let’s look at multi-country analysis. We’ll start by looking at a study by a scholar from the World Bank and Harvard’s Kennedy School.

Cross national data show no association between the increases in human capital attributable to rising educational attainment of the labor force and the rate of growth of output per worker. This implies the association of educational capital growth with conventional measures of TFP is large, strongly statistically significant, and negative. …Three causes could explain why the impact of education varied widely across countries and fell short of what was hoped. First, the institutional/governance environment could have been sufficiently perverse that the educational capital accumulation lowered economic growth. Second, perhaps the marginal returns to education fell rapidly as the supply expanded while demand for educated labor was stagnant. Third, educational quality could have been so low that “years of schooling” have created no human capital.

Here’s some statistical analysis from Professor Garett Jones of George Mason University.

Between the 60’s and the 90’s every country in this sample boosted its average years of education–it was a golden age of alleged human capital investment.  Some nations boosted schooling more, some less. How did that turn out? …The trendline points down slightly, but for the time being let’s just call it a draw.  It’s a well-known fact that countries that started the 1960’s with high education levels grew faster…, but this graph is about something different.  This graph shows that countries that increased their education levels did not grow faster.

And here’s his graph.

This data clearly shows that dumping more money into education doesn’t work.

So perhaps the problem is the way the money is getting spent, not the amount.

That’s why the moral of the story is that we need to break up government school monopolies and harness the power of the market by giving parents and students genuine school choice. For what it’s worth, there’s strong evidence that choice produces good outcomes in the limited instances where it is allowed in the United States.

P.S. There’s also strong evidence for school choice from nations such as SwedenChile, and the Netherlands.

P.P.S. Needless to say, eliminating the Department of Education is part of the solution.

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Whenever I discuss education policy with one of my leftist friends, it usually follows the same script.

They’ll ask whether I want good education for kids. I’ll say yes. They’ll then say we should devote more money to government schools.

I then show them this powerful chart and point out that we’ve been following their approach for 40-plus years and that it hasn’t worked.

None of them has ever had an effective or coherent response.

I then point out that the United States spends far more than other developed nations, on a per-pupil basis. Yet our national test scores are dismal compared to other developed nations.

Once again, none of them has ever had an effective or coherent response.

The simple reality if that giving more money to government schools is a foolish gesture.

Today, we’re going to look at some additional evidence.

Research from the World Bank pours cold water on the notion that more money for teachers leads to better outcomes for students.

…countries sometimes implement large increases in public-sector salaries to attract higher-quality applicants to government jobs and to better motivate existing employees. …understanding the extent to which unconditional pay increases make incumbent public-sector workers more motivated and productive is a key consideration in evaluating the cost effectiveness of such salary increases. …In this paper, we provide experimental evidence on the impact of a large unconditional salary increase on the effort and productivity of incumbent public employees. Our study was conducted in the context of a policy change in Indonesia that permanently doubled the base pay of eligible civil-service teachers… The reform moved teacher salaries from the 50th to the 90th percentile of the college-graduate salary distribution. Civil-service teachers in Indonesia also enjoy generous benefits and high job security, and quit rates were very low even before the pay increase. Thus, the teachers in our study are typical of public-sector employees in many low- and middle-income countries, who hold highly coveted jobs and enjoy a significant wage premium relative to their private-sector counterparts.

So what were the results of this experiment? The good news, as you might expect, is that teachers were quite happy.

The experiment significantly improved measures of teacher welfare: At the end of two and three years of the experiment, teachers in treated schools had higher income, were more likely to be satisfied with their income, and were less likely to report financial stress.

But for those of us who actually want better education for children, the results were not very satisfactory.

…despite this improvement in incumbent teachers’ pay, satisfaction, …the policy did not improve either their effort or student learning. Teachers in treated schools did not score better on tests of teacher subject knowledge, and we find no consistent pattern of impact on self-reported measures of teacher attendance. Most importantly, we find no difference in student test scores in language, mathematics, or science across treatment and control schools. …Finally, we use the school-level random assignment as an instrumental variable for being taught by a certified teacher in a given year, and find no improvement in student test scores from being taught by a certified teacher (relative to students in control schools taught by similar “target” teachers). These effects are also precisely estimated…our results are consistent with other studies finding no correlation between teacher salaries in the public sector and their teaching effectiveness (Muralidharan and Sundararaman 2011, Bau and Das 2017), and with studies finding that contract teachers who are paid much lower salaries than civil-service teachers are no less effective (Muralidharan and Sundararaman 2013, Duflo, Dupas, and Kremer 2015, Bau and Das 2017).

Indonesia is not similar to the United States, so some people will want to dismiss these finding.

But the authors note that U.S.-focused studies have reached the same conclusion.

Our results are consistent with prior studies finding no correlation between in creases in teacher pay and improved student performance in the US (Hanushek 1986; Betts 1995; Grogger 1996).

If giving teachers more money doesn’t work, is it possible that spending more money on facilities will help?

Let’s look at another academic study, published in the Journal of Public Economics, for some insight. Here’s the approach used by the scholars.

In this paper we provide the most comprehensive assessment of achievement effects from school facility investments initiated and financed by local school districts. The first part of the analysis examines the impact of nearly 1400 capital campaigns initiated by 748 school districts in the state of Texas over a 14-year period. …We examine the impact of capital campaigns on student outcomes using information on all tested students in the state over this time period, which includes all 3rd through 8th graders and 10th or 11th graders that take the state’s high school exit exam.

And here are the very disappointing results.

…the second part of the study directly measures the effect of capital investment on students actually exposed to it by analyzing more than 1300 major campus renovations. Controls for lagged individual test scores permit us to address changes in student composition resulting from capital investment, analogous to “value-added” models of teacher effectiveness. With or without this adjustment, we find no evidence of achievement effects of major campus renovations, even for renovations that appear to have generated large improvements in school facility conditions. Our estimates are sufficiently precise such that we can rule out positive effects larger than about 0.02 for math and 0.01 for reading for the first four years following a campus renovation.

By the way, I’m not arguing that pay and facilities are irrelevant. I think the takeaway from these studies is that more money doesn’t help when the underlying structure of the education system is faulty. So long as we have a centralized monopoly, more money isn’t going to help.

Unfortunately, American politicians are part of the problem.

Under President George W. Bush, the federal government spent more money on education and grabbed more control of the sector as part of the so-called No Child Left Behind initiative. That didn’t yield good results.

Under President Barack Obama, the same thing happened. Thanks to Common Core, the federal government spent more money on education and grabbed more control of the sector. That didn’t yield good results.

Indeed, a report last year for the National Center for Policy Analysis notes the dismal impact of the federal government.

Over the years, federal funding of primary and secondary education has increased, while students’ academic performance has flatlined. For instance, the high school reading and math scores on the National Assessment of Education Progress show that student performance has remained flat for the past 20 years… education reform initiatives by several administrations produced, at best, minimal improvements in student performance at a high price to taxpayers. Given its track record, the federal government should get out of the education business. Federal education reforms have failed to achieve their goals and failed to have a positive impact on education performance.

Amen. The Department of Education in Washington should be eliminated. It’s part of the problem.

Let’s close with a Reason video that looks at some absurd examples of how taxpayer money is wasted by the government school monopoly.

P.S. Let’s close with a bit of humor showing the evolution of math lessons in government schools.

P.P.S. If you want some unintentional humor, the New York Times thinks that government education spending has been reduced.

P.P.P.S. And you’ll also be amused (and outraged and disgusted) by the truly bizarre examples of political correctness in government schools.

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