Raising the efficiency of educational services The document discusses raising the efficiency of educational services through three main points: 1) Improving student performance and linking higher performance to greater economic outcomes. Even modest improvements could have large economic benefits. 2) International examples show that greater school autonomy, use of standards, and focus on science learning are associated with higher performance. 3) Successful systems also attract and retain great teachers, have high expectations for all students, and provide access to best practices and professional development.

1. Raising the efficiency of educational services The Hague, 16 March 2010 Andreas SchleicherEducation Policy Advisor of the OECD Secretary-General

2. Changes in the number of students as well as changes in expenditure on educational institutions per studentprimary to secondary education (1995,2004) Index of change between 1995 and 2004 (1995=100, 2004 constant prices) Index of change (1995=100) B1.7a

3. Latin America then… Hanushek 2009

4. Latin America then and now… Hanushek 2009

5. Latin America then and now… Why quality is the key Hanushek 2009

6. Relationship between test performance and economic outcomesAnnual improved GDP from raising performance by 25 PISA points Percent addition to GDP

7. Catching up with Finland(in percent of GDP) % currrent GDP

8. Raise everyone to minimum of 400 PISA points % currrent GDP

9. Increased likelihood of postsec. particip. at age 19/21 associated with PISA reading proficiency at age 15 (Canada)after accounting for school engagement, gender, mother tongue, place of residence, parental, education and family income (reference group PISA Level 1) Odds ratioCollege entry School marks at age 15 PISA performance at age 15

10. Some conclusions The higher economic outcomes that improved student performance entails dwarf the dimensions of economic cycles Even if the estimated impacts of skills were twice as large as the true underlying causal impact on growth, the resulting present value of successful school reform still far exceeds any conceivable costs of improvement.

11. OECD’s PISA assessment of the knowledge and skills of 15-year-olds Coverage of world economy 83% 77% 81% 85% 86% 87%

12. High science performance Average performanceof 15-year-olds in science – extrapolate and apply … 18 countries perform below this line Low science performance

13. Money matters - but other things do too Question: If better education results in more money, Does more money result in better education?

14. Student performance PISA Index of socio-economic background Advantage Disadvantage School performance and socio-economic background The Netherlands Student performance and students’ socio-economic background within schools School performance and schools’ socio-economic background Student performance and students’ socio-economic background Schools proportional to size

15. Output Output inefficiency Input inefficiency Input

16. DEA estimates of technical efficiency at the school level1B. Output oriented efficiency 1. DEA performed with four inputs (teaching and computing resources, social-economic status of students and language background) and one output (average PISA score).

17. DEA estimates of cost efficiency at the national level1B. Output oriented efficiency 1. DEA performed with two inputs (cumulative expenditure per pupils and pupils’ socio-economic background) and one output (average PISA score).2. Data for these countries concern public institutions only.

18. High science performance Average performanceof 15-year-olds in science – extrapolate and apply … 18 countries perform below this line Low science performance

19. Spending choices on secondary schoolsContribution of various factors to upper secondary teacher compensation costsper student as a percentage of GDP per capita (2004) Percentage points

20. High ambitions and universal standards Rigor, focus and coherence Great systems attract great teachers and provide access to best practice and quality professional development

21. Challenge and support Strong support Poor performance Improvements idiosyncratic Strong performance Systemic improvement Lowchallenge Highchallenge Poor performance Stagnation Conflict Demoralisation Weak support

23. Principals who manage ‘a building’, who have little training and preparation and are accountable but not empowered

24. Attracting, recruiting and providing excellent training for prospective teachers from the top third of the graduate distribution

25. Attracting and recruiting teachers from the bottom third of the graduate distribution and offering training which does not relate to real classrooms

26. Incentives, rules and funding encourage a fair distribution of teaching talent

27. The best teachers are in the most advantaged communitiesHuman capital

29. Seniority and tenure matter more than performance; patchy professional development; wide variation in quality

30. Teachers and the system expect every child to succeed and intervene preventatively to ensure this

31. Wide achievement gaps, just beginning to narrow but systemic and professional barriers to transformation remain in placeHuman capital (cont…)

32. High ambitions Devolved responsibility,the school as the centre of action Accountability and intervention in inverse proportion to success Access to best practice and quality professional development

33. School autonomy, standards-based examinations and science performanceSchool autonomy in selecting teachers for hire PISA score in science

34. Public and private schools % Score point difference Public schools perform better Private schools perform better

35. Pooled international dataset, effects of selected school/system factors on science performance after accounting for all other factors in the model School principal’s positive evaluation of quality of educational materials(gross only) Schools with more competing schools(gross only) Schools with greater autonomy (resources)(gross and net) School activities to promote science learning(gross and net) One additional hour of self-study or homework (gross and net) One additional hour of science learning at school (gross and net) School results posted publicly (gross and net) Academically selective schools (gross and net) but no system-wide effect Schools practicing ability grouping (gross and net) One additional hour of out-of-school lessons (gross and net) 20 Each additional 10% of public funding(gross only) School principal’s perception that lack of qualified teachers hinders instruction(gross only) Effect after accounting for the socio-economic background of students, schools and countries Measured effect OECD (2007), PISA 2006 – Science Competencies from Tomorrow’s World, Table 6.1a

36. Strong ambitions Devolvedresponsibility,the school as the centre of action Integrated educational opportunities From prescribed forms of teaching and assessment towards personalised learning Accountability Access to best practice and quality professional development

37. High science performance Durchschnittliche Schülerleistungen im Bereich Mathematik High average performance Large socio-economic disparities High average performance High social equity Strong socio-economic impact on student performance Socially equitable distribution of learning opportunities Early selection and institutional differentiation High degree of stratification Low degree of stratification Low average performance Large socio-economic disparities Low average performance High social equity Low science performance

38. Variation in student performance 20 OECD (2007), Learning for tomorrow’s world: First results from PISA 2006, Table 4.1a

39. Variation in student performance Variation of performance within schools Variation of performance between schools OECD (2004), Learning for tomorrow’s world: First results from PISA 2003, Table 4.1a

40. Public cost and benefits for a male obtaining post-secondary education Public costs Public benefits Net present value, USD equivalent (numbers in orange shownegative values) USD equivalent

41. Paradigm shifts

42. www.oecd.org; www.pisa.oecd.org All national and international publications The complete micro-level database email: pisa@oecd.org Andreas.Schleicher@OECD.org … and remember: Without data, you are just another person with an opinion Thank you !