Waiting for $100 Trillion
The Economic Value of Higher Teacher Quality
Eric Hanushek
Economics of Education Review, forthcoming
Abstract:
Most analyses of teacher quality end without any assessment of the economic value of altered teacher quality. This paper combines information about teacher effectiveness with the economic impact of higher achievement. It begins with an overview of what is known about the relationship between teacher quality and student achievement. This provides the basis for consideration of the derived demand for teachers that comes from their impact on economic outcomes. Alternative valuation methods are based on the impact of increased achievement on individual earnings and on the impact of low teacher effectiveness on economic growth through aggregate achievement. A teacher one standard deviation above the mean effectiveness annually generates marginal gains of over $400,000 in present value of student future earnings with a class size of 20 and proportionately higher with larger class sizes. Alternatively, replacing the bottom 5-8 percent of teachers with average teachers could move the U.S. near the top of international math and science rankings with a present value of $100 trillion.
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Ivies, Extracurriculars, and Exclusion: Elite Employers' Use of Educational Credentials
Lauren Rivera
Research in Social Stratification and Mobility, forthcoming
Abstract:
Although a robust literature has demonstrated a positive relationship between education and socio-economic attainment, the processes through which formal schooling yields enhanced economic and social rewards remains less clear. Employers play a crucial role in explaining the returns to formal schooling yet little is known about how employers, particularly elite employers, use and interpret educational credentials. In this article, I analyze how elite professional service employers use and interpret educational credentials in real-life hiring decisions. I find that educational credentials were the most common criteria employers used to solicit and screen applications. However, it was not the content of education that elite employers valued but rather its prestige. Contrary to common sociological measures of institutional prestige, employers privileged candidates who possessed a super-elite (e.g., top four) rather than selective university affiliation. They restricted competition to students with elite affiliations and attributed superior abilities to candidates who had been admitted to super-elite institutions, regardless of their actual performance once there. However, a super-elite university affiliation was insufficient on its own. Importing the logic of university admissions, firms performed a strong secondary screen on candidates' extracurricular accomplishments, favoring high status, resource-intensive activities that resonated with white, upper-middle class culture. I discuss these findings in terms of the changing nature of educational credentialism to suggest that a) extracurricular activities have become credentials of social and moral character that have monetary conversion value in labor markets and b) the way employers use and interpret educational credentials contributes to a social closure of elite jobs based on socio-economic status.
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The impact of legacy status on undergraduate admissions at elite colleges and universities
Michael Hurwitz
Economics of Education Review, forthcoming
Abstract:
In this paper, I examine the impact of legacy status on admissions decisions at 30 highly selective colleges and universities. Unlike other quantitative studies addressing this topic, I use conditional logistic regression with fixed effects for colleges to draw conclusions about the impact of legacy status on admissions odds. By doing so, I eliminate most sources of outcome bias by controlling for applicant characteristics that are constant across colleges and college characteristics that are constant across applicants. I estimate that the odds of admission are multiplied by a factor 3.13 due to legacy status. My results also suggest that the magnitude of this legacy admissions advantage depends greatly on the nature of the familial ties between the applicant and the outcome college, and, to a lesser extent, the selectivity of the outcome college and the applicant's academic strength.
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Latino Representation and Education: Pathways to Latino Student Performance
Ashley Ross, Stella Rouse & Kathleen Bratton
State Politics & Policy Quarterly, Spring 2010, Pages 69-95
Abstract:
The rapid growth of the Latino population in the U.S. over the past 15 years has led to a significant increase in levels of primary and secondary school enrollment rates of Latino children. Research on Latino education has demonstrated the institutional and contextual challenges faced by this increasingly significant group, but studies that link Latino representation and Latino educational performance have neglected to sort out the direct and indirect effects of representation on student achievement. The central assumption in these studies outlines a causal chain running from Latino political representation (school boards), to Latino bureaucratic representation (administrators and teachers), to Latino student performance. This study tests these theoretical assumptions by employing a path analytic model using data from 1,040 Texas school districts for the years 1997-2001 to tease out the direct and indirect effects of Latino representation on Latino student achievement. We find robust evidence of the impact of Latino political representation on Latino educational attainment in Texas, operating via a direct effect on the number of Latino administrators and teachers and an indirect effect on Latino student performance. Additionally, our results demonstrate that descriptive representation becomes substantive representation in the area of education policy for Latinos and that this relationship remains strong over time. These findings underscore the importance of school board elections and school district hiring practices on Latino student performance.
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Matthew Chingos & Paul Peterson
Economics of Education Review, forthcoming
Abstract:
Neither holding a college major in education nor acquiring a master's degree is correlated with elementary and middle school teaching effectiveness, regardless of the university at which the degree was earned. Teachers generally do become more effective with a few years of teaching experience, but we also find evidence that teachers may become less effective with experience, particularly later in their careers. These and other findings with respect to the correlates of teacher effectiveness are obtained from estimations using value-added models that control for student characteristics as well as school and (where appropriate teacher) fixed effects in order to measure teacher effectiveness in reading and math for Florida students in fourth through eighth grades for eight school years, 2001-02 through 2008-09.
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Sarah Reber
Review of Economics and Statistics, forthcoming
Abstract:
School desegregation might have induced unintended behavioral responses of white families as well as state and local governments. This study examines these responses and is the first to study the effects of desegregation on the finances of school districts. Desegregation induced white flight from blacker to whiter public school districts and to private schools, but the local property-tax base and local revenue were not adversely affected. The state legislature directed significant new funding to districts where whites were particularly affected by desegregation. Desegregation therefore appears to have achieved its intended goal of improving resources available in schools attended by blacks.
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Cross-Country Evidence on Teacher Performance Pay
Ludger Woessmann
Economics of Education Review, forthcoming
Abstract:
The general-equilibrium effects of performance-related teacher pay include long-term incentive and teacher-sorting mechanisms that usually elude experimental studies but are captured in cross-country comparisons. Combining country-level performance-pay measures with rich PISA-2003 international achievement micro data, this paper estimates student-level international education production functions. The use of teacher salary adjustments for outstanding performance is significantly associated with math, science, and reading achievement across countries. Scores in countries with performance-related pay are about one quarter standard deviations higher. Results avoid bias from within-country selection and are robust to continental fixed effects and to controlling for non-performance-based forms of teacher salary adjustments.
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Charter School Competition and Its Impact on Employment Spending in Michigan's Public Schools
David Welsch
Contemporary Economic Policy, forthcoming
Abstract:
This paper seeks to determine how competition from charter schools affects a broad range of employees including instructors, administrators, and support personnel. Three empirical models are estimated utilizing a panel data from Michigan: a fixed effect model, a fixed effect model with lagged dependent variable, and an instrumental variable model. The key findings are that when a school district faces competition from charter schools they spend a larger percentage on instructors (most likely most of this is going toward teachers and not teacher aides), while spending a smaller percentage on employees that support instructors. The models seem to imply that the increased spending on teachers may not be reflected in a salary increase.
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Negative Publicity and Catholic Schools
Angela Dills & Rey Hernández-Julián
Economic Inquiry, forthcoming
Abstract:
Between 1990 and 2007, the number of Catholic schools in the United States decreased by 14% and enrollment diminished by 7%. We generate two measures of publicity of sexual abuse at the diocesan level - public disclosure and news coverage. Dioceses with higher rates of negative publicity had a larger decline in both the number of Catholic schools and overall Catholic school enrollment. We estimate that publicity arising from sexual offenders within the Church explains 5% of the decline in the availability of Catholic schooling.
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Signals and Closure by Degrees: The Education Effect Across 15 European Countries
Thijs Bol & Herman van de Werfhorst
Research in Social Stratification and Mobility, forthcoming
Abstract:
Stratification research has extensively studied country-differences in the strength of the relationship between education and labor market outcomes. This research has mostly neglected the different mechanisms that could explain why education is rewarded. In this paper we argue that not only the strength of the relationship, but also the mechanisms explaining why education is rewarded differ between countries. National institutions affect how employers see education, what it brings to the organization, and how workers signal their potential productivity. Empirically we focus on the partial effects of qualifications on top of years of education in fifteen European countries. We find that strongly vocationally oriented and differentiated schooling systems have relatively strong net effects of qualifications on occupational status, which is explained by stronger signalling by qualification levels in those countries. Furthermore, in coordinated market economies we find that vocational education leads to higher status jobs relative to liberal market economies, which is explained by higher levels of closure implemented by coordination institutions.
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Liqun Liu & William Neilson
Economics of Education Review, forthcoming
Abstract:
In this paper college admissions are based on test scores and students can exert two types of effort: real learning and exam preparation. The former improves skills but the latter is more effective in raising test scores. In this setting the students with the lowest skills are no longer the ones with the lowest aptitude, but instead are the ones closest to the borderline for college admission. Increased access to college leads to greater income inequality between college graduates and non-graduates. Overall, the ability to study for the test leads to higher expected test scores but lower skills.
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Assets and liabilities, educational expectations, and children's college degree attainment
Min Zhan & Michael Sherraden
Children and Youth Services Review, forthcoming
Abstract:
This research examines relationships among household assets and liabilities, educational expectations of children and parents, and children's college degree attainment. Special attention is paid to influences of different asset types (financial vs. nonfinancial assets) and liabilities (secured vs. unsecured debt). Results indicate that, after controlling for family income and other parent/child characteristics, financial and nonfinancial assets are positively related to, and unsecured debt is negatively related to, children's college completion. Furthermore, there is evidence that financial assets are positively associated with the education expectations of parents and children. Policy directions are suggested.
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John Papay
American Educational Research Journal, February 2011, Pages 163-193
Abstract:
Recently, educational researchers and practitioners have turned to value-added models to evaluate teacher performance. Although value-added estimates depend on the assessment used to measure student achievement, the importance of outcome selection has received scant attention in the literature. Using data from a large, urban school district, I examine whether value-added estimates from three separate reading achievement tests provide similar answers about teacher performance. I find moderate-sized rank correlations, ranging from 0.15 to 0.58, between the estimates derived from different tests. Although the tests vary to some degree in content, scaling, and sample of students, these factors do not explain the differences in teacher effects. Instead, test timing and measurement error contribute substantially to the instability of value-added estimates across tests.
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Brian Jacob & Elias Walsh
Economics of Education Review, forthcoming
Abstract:
We examine the relationship between the formal ratings that principals give teachers and a variety of observable teacher characteristics, including proxies for productivity. Prior work has shown that principals can differentiate between more and less effective teachers, especially at the tails of the quality distribution, and that subjective evaluations of teachers are strongly correlated with subsequent student achievement. However, whereas prior work has relied on survey data, we consider formal ratings from a setting in which the stakes are reasonably high. We find that the ratings are correlated with an array of teacher qualities including experience for young teachers, education credentials, and teacher absenteeism. Our finding that principals reward qualities of teachers known to be related to student productivity provides reason to be optimistic about policies that would assign more weight to principal evaluations of teachers in career decisions and compensation.
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Age, period, cohort and educational attainment: The importance of considering gender
James Wilson, Christine Zozula & Walter Gove
Social Science Research, January 2011, Pages 136-149
Abstract:
Over the past century, the United States has experienced substantial population-wide gains in educational attainment - increases driven largely by processes of cohort succession. Focusing on the adult population age 25-54, we show that there has been (1) a significant attenuation of the historical increases in educational attainment, and (2) a shift in the processes underlying educational change that differs by gender. Our analysis points to a significant turning point in population-wide educational levels, and from a research perspective, has implications for how one interprets findings when using education as a control variable.
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Linda Renzulli, Heather Macpherson Parrott & Irenee Beattie
Sociology of Education, January 2011, Pages 23-48
Abstract:
Studies of teacher satisfaction suggest that satisfaction is related to both the racial composition and the organizational structure of the schools in which teachers work. In this article, the authors draw from theories of race and organizations to examine simultaneously the effects of school type (traditional public vs. charter) and racial mismatch on teacher satisfaction and subsequent turnover. In doing so, they examine the organizational differences between traditional public and charter schools that contribute to systematic differences in satisfaction and turnover across these school types. Using 1999-2000 Schools and Staffing Survey data, the authors find that charter school teachers are more satisfied than are public school teachers because of greater autonomy. Charter school teachers, however, are more likely to leave teaching than are traditional teachers. The authors also show that teaching in racially mismatched schools results in lower levels of satisfaction for white teachers and that being in a charter school reduces this negative effect.
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Is traditional teaching really all that bad? A within-student between-subject approach
Guido Schwerd & Amelie Wuppermann
Economics of Education Review, forthcoming
Abstract:
Recent studies conclude that teachers are important for student learning but it remains uncertain what actually determines e®ective teaching. This study directly peers into the black box of educational production by investigating the relationship between lecture style teaching and student achievement. Based on matched student- teacher data for the US, the estimation strategy exploits between-subject variation to control for unobserved student traits. Results indicate that traditional lecture style teaching is associated with signīcantly higher student achievement. No support for detrimental effects of lecture style teaching can be found even when evaluating possible selection biases due to unobservable teacher characteristics.
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Gary Evans, Min Jun Yoo & John Sipple
Journal of Environmental Psychology, June 2010, Pages 239-244
Abstract:
National reports along with numerous statewide studies indicate that the physical infrastructure of American schools is crumbling. At the same time there is emerging evidence that school building quality matters for children's academic achievement. We integrate two separate literatures that have demonstrated that low school building quality as well as high rates of student mobility each contribute to reduced academic achievement by showing that these two variables statistically interact. Elementary school children in 511 New York City public schools have lower achievement scores if they attend schools of poor structural quality and with high rates of student mobility. The significant main and interactive effects of school building quality and student mobility on standardized test scores occur independently of socioeconomic and racial composition of the school.