- Eric A. Hanushek
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Eric A. Hanushek
The impact of school resources on student outcomes was first raised in the 1960s and has been controversial since then. This issue enters into the decision making on school finance in both legislatures and the courts. The historical research found little consistent or systematic relationship of spending and achievement, but this research frequently suffers from significant concerns about the underlying estimation strategies. More recent work has re-opened the fundamental resource-achievement relationship with more compelling analyses that offer stronger identification of resource impacts. A thorough review of existing studies, however, leads to similar conclusions as the historical work: how resources are used is key to the outcomes. At the same time, the research has not been successful at identifying mechanisms underlying successful use of resources or for ascertaining when added school investments are likely to be well-used. Direct investigations of alternative input policies (capital spending, reducing class size, or salary incentives for teachers) do not provide clear support for such specific policy initiatives.
How far is the world away from ensuring that every child obtains the basic skills needed to be internationally competitive? And what would accomplishing this mean for world development? Based on the micro data of international and regional achievement tests, we map achievement onto a common (PISA) scale. We then estimate the share of children not achieving basic skills for 159 countries that cover 98.1% of world population and 99.4% of world GDP. We find that at least two-thirds of the world’s youth do not reach basic skill levels, ranging from 24% in North America to 89% in South Asia and 94% in Sub-Saharan Africa. Our economic analysis suggests that the present value of lost world economic output due to missing the goal of global universal basic skills amounts to over $700 trillion over the remaining century, or 11% of discounted GDP.
The worldwide school closures in early 2020 led to losses in learning that will not easily be made up for even if schools quickly return to their prior performance levels. These losses will have lasting economic impacts both on the affected students and on each nation unless they are effectively remediated.
While the precise learning losses are not yet known, existing research suggests that the students in grades 1-12 affected by the closures might expect some 3 percent lower income over their entire lifetimes. For nations, the lower long-term growth related to such losses might yield an average of 1.5 percent lower annual GDP for the remainder of the century. These economic losses would grow if schools are unable to re-start quickly.
The economic losses will be more deeply felt by disadvantaged students. All indications are that students whose families are less able to support out-of-school learning will face larger learning losses than their more advantaged peers, which in turn will translate into deeper losses of lifetime earnings.
The present value of the economic losses to nations reach huge proportions. Just returning schools to where they were in 2019 will not avoid such losses. Only making them better can. While a variety of approaches might be attempted, existing research indicates that close attention to the modified re-opening of schools offers strategies that could ameliorate the losses. Specifically, with the expected increase in video-based instruction, matching the skills of the teaching force to the new range of tasks and activities could quickly move schools to heightened performance. Additionally, because the prior disruptions are likely to increase the variations in learning levels within individual classrooms, pivoting to more individualised instruction could leave all students better off as schools resume.
As schools move to re-establish their programmes even as the pandemic continues, it is natural to focus considerable attention on the mechanics and logistics of safe re-opening. But the long-term economic impacts also require serious attention, because the losses already suffered demand more than the best of currently considered re-opening approaches.
Patience and risk-taking – two cultural traits that steer intertemporal decision-making – are fundamental to human capital investment decisions. To understand how they contribute to international differences in student achievement, we combine PISA tests with the Global Preference Survey. We find that opposing effects of patience (positive) and risk-taking (negative) together account for two-thirds of the cross-country variation in student achievement. In an identification strategy addressing unobserved residence-country features, we find similar results when assigning migrant students their country-of-origin cultural traits in models with residence-country fixed effects. Associations of culture with family and school inputs suggest that both may act as channels.
India took a decisive step toward universal basic education by proclaiming a constitutionally-guaranteed Right to Education (RTE) Act in 2009 that called for full access of children aged 6-14 to free schooling. This paper considers the offsetting effects to RTE from induced expansion of private tutoring in the educationally competitive districts of India. We develop a unique database of registrations of new private educational institutions offering tutorial services by local district between 2001-2015. We estimate the causal impact of RTE on private supplemental education by comparing the growth of these private tutorial institutions in districts identified a priori as having very competitive educational markets to those that had less competitive educational markets. We find a strong impact of RTE on the private tutoring market and show that this holds across alternative definitions of highly competitive districts and a variety of robustness checks, sensitivity analyses, and controls. Finally, we provide descriptive evidence that these private tutoring schools do increase the achievement (and competitiveness) of students able to afford them.
Rising inequality in the United States has raised concerns about potentially widening gaps in educational achievement by socio-economic status (SES). Using assessments from LTT-NAEP, Main-NAEP, TIMSS, and PISA that are psychometrically linked over time, we trace trends in achievement for U.S. student cohorts born between 1954 and 2001. Achievement gaps between the top and bottom quartiles of the SES distribution have been large and remarkably constant for a near half century. These unwavering gaps have not been offset by improved achievement levels, which have risen at age 14 but have remained unchanged at age 17 for the past quarter century.
States and localities cannot avoid dealing with issues of teacher compensation. Not only is it the largest budget item for most local governments, but it is the place of largest leverage for improving the quality of schools. Fortunately, consistent research evidence directly informs ways to optimize teacher compensation.
This research provides strong motivation for improving teacher compensation. First, it shows that teachers are paid significantly less than they could earn outside of teaching. Second, teacher salaries have been stagnant, largely because personnel budgets have been more directed toward increasing the number of educators and administrators than toward supporting teachers. But simply increasing pay without consideration of teacher effectiveness will not lead to improved student outcomes.
The economic status of both students and the nation as a whole could be dramatically improved with increases in school quality. But with pressures on public budgets—due importantly to the growing costs of public pensions and health benefits—personnel dollars will have to be used more strategically if our students are to compete internationally. Moreover, the nation has a substantial equity problem: achievement gaps have been constant for a half century despite a wide variety of federal, state, and local policies designed to address them.