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SCHOOLING POLICIES
FOR QUALITY AND
ECONOMIC GROWTH
Eric A. Hanushek
Stanford University
May 2013
Key Questions
1. Does achievement matter?
YES
2. Is Spain competitive?
NO
3. How is Spain doing?
NOT WELL
4. Are there things to be done?
YES
Does achievement matter?
and
Is Spain competitive?
Cognitive Skills and Long Run Economic Growth
Years of Schooling and Economic Growth
Without quality control
With quality control
PISAMathematicsAchievement, 2009
0
100
200
300
400
500
600
Shanghai
Singapore
HongKong
Korea
Taiwan
Finland
Liechtenstein
Switzerland
Japan
Canada
Netherlands
Macao
NewZealand
Belgium
Australia
Germany
Estonia
Iceland
Denmark
Slovenia
Norway
France
Slovak_Republic
Austria
Poland
Sweden
Czech_Republic
United_Kingdom
Hungary
Luxembourg
United_States
Ireland
Portugal
Spain
Italy
Latvia
Lithuania
Russian_Fed
Greece
Croatia
Dubai(UAE)
Israel
Turkey
Serbia
Azerbaijan
Bulgaria
Romania
Uruguay
Chile
Thailand
Mexico
Trinidad_Tobago
Kazakhstan
Montenegro
Argentina
Jordan
Brazil
Colombia
Albania
Tunisia
Indonesia
Qatar
Peru
Panama
Kyrgyzstan
PISAMathematicsAchievement, 2009
0
100
200
300
400
500
600
Shanghai
Singapore
HongKong
Korea
Taiwan
Finland
Liechtenstein
Switzerland
Japan
Canada
Netherlands
Macao
NewZealand
Belgium
Australia
Germany
Estonia
Iceland
Denmark
Slovenia
Norway
France
Slovak_Republic
Austria
Poland
Sweden
Czech_Republic
United_Kingdom
Hungary
Luxembourg
United_States
Ireland
Portugal
Spain
Italy
Latvia
Lithuania
Russian_Fed
Greece
Croatia
Dubai(UAE)
Israel
Turkey
Serbia
Azerbaijan
Bulgaria
Romania
Uruguay
Chile
Thailand
Mexico
Trinidad_Tobago
Kazakhstan
Montenegro
Argentina
Jordan
Brazil
Colombia
Albania
Tunisia
Indonesia
Qatar
Peru
Panama
Kyrgyzstan
PISAMathematicsAchievement, 2009
0
100
200
300
400
500
600
Shanghai
Singapore
HongKong
Korea
Taiwan
Finland
Liechtenstein
Switzerland
Japan
Canada
Netherlands
Macao
NewZealand
Belgium
Australia
Germany
Estonia
Iceland
Denmark
Slovenia
Norway
France
Slovak_Republic
Austria
Poland
Sweden
Czech_Republic
United_Kingdom
Hungary
Luxembourg
United_States
Ireland
Portugal
Spain
Italy
Latvia
Lithuania
Russian_Fed
Greece
Croatia
Dubai(UAE)
Israel
Turkey
Serbia
Azerbaijan
Bulgaria
Romania
Uruguay
Chile
Thailand
Mexico
Trinidad_Tobago
Kazakhstan
Montenegro
Argentina
Jordan
Brazil
Colombia
Albania
Tunisia
Indonesia
Qatar
Peru
Panama
Kyrgyzstan
0
2000
4000
6000
8000
10000
12000
Iceland Finland EU 2020
billion€
Improvement in Achievement
Present Value of Gains to GDP for Spain
0
2000
4000
6000
8000
10000
12000
Iceland Finland EU 2020
billion€
Improvement in Achievement
6.2% 5.0%
20.2%
Present Value of Gains to GDP for Spain
How is Spain doing?
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
Latvia
Chile
Brazil
Portugal
HongKong
Germany
Poland
Liechtenstein
Slovenia
Colombia
Lithuania
UnitedKingdom
Singapore
Switzerland
Greece
Mexico
Israel
Finland
Italy
NewZealand
Denmark
Korea,Rep.
Hungary
Iran
UnitedStates
Taiwan…
Belgium
Canada
Cyprus
Australia
Jordan
RussianFed.
Indonesia
Austria
Spain
Iceland
Japan
Netherlands
Tunisia
Argentina
Achievement Growth, 1995-2009
Are there things to be done?
Resource Policies
• Little evidence of success
• Cross country evidence
• Within country – developed
• Within country – developing
Resources and Performance across Countries
350
400
450
500
550
0 10000 20000 30000 40000 50000 60000 70000 80000
Math performance in PISA 2003
Cumulative educational expenditure per student
Mexico
Belgium
Iceland
FranceSweden
Switzerland
Denmark
Austria
Norway
USA
ItalyPortugal
Spain
Korea
Germany
Ireland
Czech Rep.
Hungary
Poland
Slovak Rep.
Greece
Finland
Netherlands
Canada
Japan
Australia
R 2 = 0.01
R 2 = 0.15
Resource Policies
• Little evidence of successle evidence of success
• Cross country evidence
• Within country – developed
• Within country – developing
• Consistent with detailed analysis
• class size
• school characteristics
Resource Policies
• Does not say “resources never have effect”
• Does not say “resources cannot have effect”
No expectation within current incentive
structure
Teacher Quality
• Teachers most important input
• No identifiable characteristics
• Master’s degrees
• Experience*
• Certification
• Preparation
• Professional development
• Observable through both student performance and
supervisor ratings
• Cannot regulate and pay on characteristics
Institutional Reforms Supported by Evidence
• Centralized exams
• Accountability
• Autonomy/decentralization
Institutional Reforms Supported by Evidence
• Centralized exams
• Accountability
• Autonomy/decentralization
• Choice
• Direct performance incentives
0.00
0.25
0.50
0.75
1.00
0% 2% 4% 6% 8% 10% 12%
s.d.performancegain
Percent deselected
low estimate of teacher effectiveness
Iceland
Alternative Estimates of Least Effective Teachers
(United States distribution)
0.00
0.25
0.50
0.75
1.00
0% 2% 4% 6% 8% 10% 12%
s.d.performancegain
Percent deselected
high estimate of teacher effectiveness low estimate of teacher effectiveness
Iceland
Alternative Estimates of Least Effective Teachers
(United States distribution)
0.00
0.25
0.50
0.75
1.00
0% 2% 4% 6% 8% 10% 12%
s.d.performancegain
Percent deselected
high estimate of teacher effectiveness low estimate of teacher effectiveness
Iceland
Finland
Alternative Estimates of Least Effective Teachers
(United States distribution)
Key Questions
1. Does achievement matter?
YES
2. Is Spain competitive?
NO
3. How is Spain doing?
NOT WELL
4. Are there things to be done?
YES
Australia
Australia
Belgium
Belgium
Canada
Canada
Finland
Finland
France
FranceUK
UK
Germany
Germany
Italy
Italy
Japan
Japan
Korea
Korea
Netherlands
Netherlands
N. Zealand
N. Zealand
Norway
Norway
Sweden
Sweden
USA
USA
460
480
500
520
540
560
1975 2000
Trends in
Test Scores
Changes in Growth Rates
vs. Changes in Test Scores

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Schooling policies for quality and economic growth

Editor's Notes

  1. Drops 7 negative including France and Norway
  2. Deselect teachers at bottommean of truncated distribution = density/cum at cutoff calculate for N(0,1) and then translate into student achievement distribution 13 years times change in meanCanada approx +0.5 sd; Finland +0.75 sd
  3. Deselect teachers at bottommean of truncated distribution = density/cum at cutoff calculate for N(0,1) and then translate into student achievement distribution 13 years times change in meanCanada approx +0.5 sd; Finland +0.75 sd
  4. Deselect teachers at bottommean of truncated distribution = density/cum at cutoff calculate for N(0,1) and then translate into student achievement distribution 13 years times change in meanCanada approx +0.5 sd; Finland +0.75 sd