Schools and student achievement: more evidence from the Milwaukee parental choice program

Using math and reading test score gains, the author compares the achievement of students in the nonsectarian private schools participating in Milwaukee's Parental Choice Program with the achievement of students in a wide range of Milwaukee's public schools. Her results point to the need for a better understanding of what makes a school successful.Education

The changing value of education

Why has the economic value of education stopped rising over the past ten years? The most likely explanation seems to be that the booming economy of the late 1990s helped to increase the average earnings of all workers, including those at the low end of the skills distribution.Education - Economic aspects ; Labor market

Do returns to schooling differ by race and ethnicity?

Using data from the U.S. Decennial Census and the National Longitudinal Surveys, we find little evidence of differences in the return to schooling across racial and ethnic groups, even with attempts to control for ability and measurement error biases. While our point estimates are relatively similar across racial and ethnic groups, our conclusion is driven in part by relatively large standard errors. ; That said, we find no evidence that returns to schooling are lower for African Americans or Hispanics than for non-minorities. As a result, policies that increase education among the low-skilled have a good possibility of increasing economic well-being and reducing inequality. More generally, our analysis suggests further research is needed to better understand the nature of measurement error and ability bias across subgroups in order to fully understand potential heterogeneity in the return to schooling across the population.Education ; Employees, Training of

Constrained After College: Student Loans and Early Career Occupational Choices

In the early 2000s, a highly selective university introduced a "no-loans" policy under which the loan component of financial aid awards was replaced with grants. We use this natural experiment to identify the causal effect of student debt on employment outcomes. In the standard life-cycle model, young people make optimal educational investment decisions if they are able to finance these investments by borrowing against future earnings; the presence of debt has only income effects on future decisions. We find that debt causes graduates to choose substantially higher-salary jobs and reduces the probability that students choose low-paid "public interest" jobs. We also find some evidence that debt affects students' academic decisions during college. Our estimates suggest that recent college graduates are not life-cycle agents. Two potential explanations are that young workers are credit constrained or that they are averse to holding debt. We find suggestive evidence that debt reduces students' donations to the institution in the years after they graduate and increases the likelihood that a graduate will default on a pledge made during her senior year; we argue this result is more likely consistent with credit constraints than with debt aversion.

Causality, causality, causality: the view of education inputs and outputs from economics

Educators and policy makers are increasingly intent on using scientifically-based evidence when making decisions about education policy. Thus, education research today must necessarily be focused on identifying the causal relationships between education inputs and student outcomes. In this paper we discuss methodologies for estimating the causal effect of resources on education outcomes; we also review what we believe to be the best evidence from economics on a few important inputs: spending, class size, teacher quality, the length of the school year, and technology. We conclude that while the number of papers using credible identification strategies is thin, the body of credible research on causal relationships is growing, and we have started to gather evidence that some school inputs matter while others do not.Education - Economic aspects ; Technology - Economic aspects

School vouchers and student achievement: recent evidence, remaining questions

In this article, we review the empirical evidence on the impact of education vouchers on student achievement, and briefly discuss the evidence from other forms of school choice. The best research to date finds relatively small achievement gains for students offered education vouchers, most of which are not statistically different from zero. Further, what little evidence exists regarding the potential for public schools to respond to increased competitive pressure generated by vouchers suggests that one should remain wary that large improvements would result from a more comprehensive voucher system. The evidence from other forms of school choice is also consistent with this conclusion. Many questions remain unanswered, however, including whether vouchers have longer-run impacts on outcomes such as graduation rates, college enrollment, or even future wages, and whether vouchers might nevertheless provide a cost-neutral alternative to our current system of public education provision at the elementary and secondary school level.Educational vouchers

The economic value of education by race and ethnicity

Using data from the U.S. Census and the National Longitudinal Surveys, the authors find little evidence of differences in the economic value of education across racial and ethnic groups, even with attempts to control for ability and measurement error biases. As a result, they argue, policies that increase education among the low-skilled, who are disproportionately African American and Hispanic, have a good possibility of increasing their economic well-being and reducing inequality.Education - Economic aspects ; Labor economics

Using market valuation to assess the importance and efficiency of public school spending

In this paper we take a "market-based" approach to examine whether increased school expenditures are valued by potential residents and whether the current level of public school provision is inefficient. We do so by employing an instrumental variables strategy to estimate the effect of state education aid on residential property values. We find evidence that, on average, additional state aid is valued by potential residents and that school districts appear to spend efficiently or, if anything, underspend. We also find that school districts spend less efficiently in areas in which they face little or no competition from other public schools, in large districts, and in areas in which residents are poor or less educated. One interpretation of these results is that increased competition has the potential to increase school efficiency in some areas.Education

The Underrepresentation of Women in Economics: A Study of Undergraduate Economics Students

Although women are underrepresented in the field of economics, many see little need for intervention, arguing that women are inherently less interested in economics, or are less willing or able to get the math skills skills needed to do well in the subject. At the same time, others support active efforts to increase the number of women in the field, citing other possible causes of their current underrepresentation. These people argue, for example, that women are deterred from entering the field because of a lack of female role models, or that women are discouraged by an unappealing classroom environment. This study assesses these hypotheses by examining factors that influence undergraduate students' decisions to become economics majors using a survey of students in the introductory economics course at Harvard University as well as data on an entire class of students from Harvard's registrar. We find that although women in the introductory economics course at Harvard tend to begin the course with a weaker math background than men, math background does not explain much of the gender difference in students' decisions about majoring in economics. The class environment and the presence or absence of role models also do not explain much of the gender gap. On the other hand, women do less well in economics relative to other courses than men do, and controlling for this difference in relative performance significantly diminishes the estimated gender gap. An economically large but statistically insignificant difference between sexes in the probability of majoring in economics remains, however, which may be due to differing tastes or information about the nature of economics.

Technology’s edge: the educational benefits of computer-aided instruction

Because a significant portion of U.S. students lacks critical mathematic skills, schools across the country are investing heavily in computerized curriculums as a way to enhance education output, even though there is surprisingly little evidence that they actually improve student achievement. In this paper we present results from a randomized study in three urban school districts of a well- defined use of computers in schools: a popular instructional computer program which is designed to teach pre-algebra and algebra. We assess the impact of the program using statewide tests that cover a range of math skills and tests designed specifically to target pre- algebra and algebra skills. We find that students randomly assigned to computer-aided instruction score at least 0.17 of a standard deviation higher on a pre- algebra/algebra test than students randomly assigned to traditional instruction. We hypothesize that the effectiveness arises from increased individualized instruction as the effects appear larger for students in larger classes and those in classes in which students are frequently absent.Computer-assisted instruction ; Technology