Findings

Merit Scholarship

Kevin Lewis

February 15, 2012

Returns to Education: Exploring the Link Between Legislators' Public School Degrees and State Spending on Higher Education

Megan Thiele, Kristen Shorette & Catherine Bolzendahl
Sociological Inquiry, forthcoming

Abstract:
The United States leads the world in public higher education, with a substantial amount of funding coming from state, rather than federal, government sources. Perhaps not surprisingly, the amount states contribute varies widely, leading researchers to explore the sources of such variation. While numerous factors have been shown to matter, the potential relevance of political representation remains unclear. To address this gap, the relationship between state legislators' own educational backgrounds and state spending on higher education is tested. Utilizing a database of publicly available information on the educational backgrounds of 6,517 state senators and representatives, we find that states with a higher percentage of legislators who attended state colleges and/or universities invest more generously in public higher education than other state legislatures. Results support theories of representation, suggesting that legislators may be directly advocating for spending given their own educational profiles.

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Does Federal Student Aid Raise Tuition? New Evidence on For-Profit Colleges

Stephanie Riegg Cellini & Claudia Goldin
NBER Working Paper, February 2012

Abstract:
We use administrative data from five states to provide the first comprehensive estimates of the size of the for-profit higher education sector in the U.S. Our estimates include schools that are not currently eligible to participate in federal student aid programs under Title IV of the Higher Education Act and are therefore missed in official counts. We find that the number of for-profit institutions is double the official count and the number of students is between one-quarter and one-third greater. Many for-profit institutions that are not Title IV eligible offer programs and certificates that are similar, if not identical, to those given by institutions that are part of Title IV. We find that the Title IV institutions charge tuition that is about 75 percent higher than that charged by comparable institutions whose students cannot apply for federal financial aid. The dollar value of the premium is about equal to the amount of financial aid received by students in eligible institutions, lending credence to the "Bennett hypothesis" that aid-eligible institutions raise tuition to maximize aid.

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An Integrated Assessment of the Effects of Title I on School Behavior, Resources, and Student Achievement

Jordan Matsudaira, Adrienne Hosek & Elias Walsh
Economics of Education Review, forthcoming

Abstract:
We examine the effects of Title I on school behavior, resources, and academic performance using a rich set of school finance and student-level achievement data from one large urban school district using a regression discontinuity design. We find that Title I eligibility raises Federal revenues of schools by about $460 per student. This is partially offset by decreases in revenues from state categorical aid grants, so that the net increase to schools is about $360 per student. We find no impact on overall school-level test scores, but also no impact among the subgroups of students most likely to be affected by Title I. A novel finding is that schools appear to respond to the incentives embedded in the Title I allocation process by manipulating the fraction of their students signed up for free lunch to secure more Federal funds.

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Examining the Effects of Gifted Programming in Mathematics and Reading Using the ECLS-K

Jill Adelson, Betsy McCoach & Katherine Gavin
Gifted Child Quarterly, January 2012, Pages 25-39

Abstract:
This study examined the average effects of schools' third through fifth grade gifted programming policy in mathematics and reading on overall school achievement, on gifted students' achievement and academic attitudes and on nongifted students' achievement and academic attitudes. Data and results represent a broad, national look at school personnel-reported programming without distinction as to type, length, or degree of programming. No detrimental effects were found at the overall school level or for nongifted students. However, the results also indicated that, on average, the diverse programs reported in the Early Childhood Longitudinal Study, Kindergarten Class of 1988-1989 (ECLS-K) database had no effect on gifted students' achievement or academic attitudes. Considered in light of prior research indicating benefits of specific programs and existing inconsistent policies and programs, this suggests the need for future research to determine effective program characteristics and suggests that policy makers, educators, and parents actively must seek research-based practices to use with gifted children.

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The Effect of Education on Old Age Cognitive Abilities: Evidence from a Regression Discontinuity Design

James Banks & Fabrizio Mazzonna
Economic Journal, forthcoming

Abstract:
In this paper we exploit the 1947 change to the minimum school-leaving age in England from 14 to 15, to evaluate the causal effect of a year of education on cognitive abilities at older ages. We use a regression discontinuity design analysis and find a large and significant effect of the reform on males' memory and executive functioning at older ages, using simple cognitive tests from the English Longitudinal Survey on Ageing (ELSA) as our outcome measures. This result is particularly remarkable since the reform had a powerful and immediate effect on about half the population of 14-year-olds. We investigate and discuss the potential channels by which this reform may have had its effects, as well as carrying out a full set of sensitivity analyses and robustness checks.

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Teacher Salaries and Teacher Aptitude: An Analysis Using Quantile Regressions

Gregory Gilpin
Economics of Education Review, forthcoming

Abstract:
This study investigates the relationship between salaries and scholastic aptitude for full-time public high school humanities and mathematics/sciences teachers. For identification, we rely on variation in salaries between adjacent school districts within the same state. The results indicate that teacher aptitude is positively correlated with teacher salaries with an elasticity point estimate of 0.132. However, using quantile regressions, we find the elasticity estimates form an inverted U-shape across the scholastic aptitude distribution, and that higher aptitude teachers are more profoundly affected by the percentage of students eligible for free lunch and local street crime, while lower aptitude teachers are more profoundly affected by local education support. Furthermore, studying mathematics/sciences teachers, we find that while the elasticity estimates maintain an inverted U-shape, scholastic aptitude is not correlated with changes in salaries for the lower 40 percentiles of the aptitude distribution.

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Aligning Student, Parent, and Teacher Incentives: Evidence from Houston Public Schools

Roland Fryer
NBER Working Paper, January 2012

Abstract:
This paper describes an experiment designed to investigate the impact of aligning student, parent, and teacher incentives on student achievement. On outcomes for which incentives were provided, there were large treatment effects. Students in treatment schools mastered more than one standard deviation more math objectives than control students, and their parents attended almost twice as many parent-teacher conferences. In contrast, on related outcomes that were not incentivized (e.g. standardized test scores, parental engagement), we observe both positive and negative effects. We argue that these facts are consistent with a moral hazard model with multiple tasks, though other explanations are possible.

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The Complexity of Non-Completion: Being Pushed or Pulled to Drop Out of High School

Christen Bradley & Linda Renzulli
Social Forces, December 2011, Pages 521-545

Abstract:
Using a model of student dropout with only two possible outcomes - "still in school" or "dropout" - hides the complex reasons that students leave high school. We offer a model with three outcomes: in school, pushed out or pulled out. Using data from the Educational Longitudinal Survey, we find that for black students, differences in SES explain higher likelihoods of being either pushed or pulled out as compared to white students, but Latino students remain more likely to be pulled out even after we control for SES. We also find that SES moderates the relationship between race/gender and being pushed out, and that higher levels of SES may be detrimental to students of color in the context of high poverty schools.

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Cohort Crowding and Nonresident College Enrollment

John Winters
Economics of Education Review, forthcoming

Abstract:
This study uses a fixed effects panel data framework to examine the effects of cohort crowding and other variables on nonresident enrollment at four-year public colleges and universities. The results suggest that larger cohorts of resident students crowd out nonresident students at flagship universities, but there is inconsistent evidence of crowd out at non-flagship schools. Additionally, larger cohorts of resident students result in increased nonresident tuition at flagship universities but not at non-flagship schools. When faced with larger cohorts of resident students, flagship universities lower the numbers of nonresident students enrolled and raise the price for nonresidents.

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Information Constraints and Financial Aid Policy

Judith Scott-Clayton
NBER Working Paper, February 2012

Abstract:
One justification for public support of higher education is that prospective students, particularly those from underprivileged groups, lack complete information about the costs and benefits of a college degree. Beyond financial considerations, students may also lack information about what they need to do academically to prepare for and successfully complete college. Yet until recently, college aid programs have typically paid little attention to students' information constraints, and the complexity of some programs can exacerbate the problem. This chapter describes the information problems facing prospective students as well as their consequences, drawing upon economic theory and empirical evidence.

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Public sector decentralization and school performance: International evidence

Torberg Falch & Justina Fischer
Economics Letters, March 2012, Pages 276-279

Abstract:
Using a panel of international student test scores 1980-2000 (PISA and TIMSS), panel fixed effects estimates suggest that government spending decentralization is conducive to student performance. The effect does not appear to be mediated through levels of educational spending.

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Competition, Wages and Teacher Sorting: Lessons Learned from a Voucher Reform

Lena Hensvik
Economic Journal, forthcoming

Abstract:
This paper examines how the entry of private independent high schools in Sweden affects the mobility and wages of teachers in a market with individual wage bargaining. Using matched employer-employee panel data covering all high school teachers over 16 years, I show that the entry of private schools is associated with higher teacher salaries, also for teachers in public schools. The wage returns from competition are highest for teachers entering the profession and for teachers in math and science. Private school entry also seems to have increased wage dispersion between high- and low-skilled teachers within the same field.

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What Explains Trends in Labor Supply Among U.S. Undergraduates, 1970-2009?

Judith Scott-Clayton
NBER Working Paper, January 2012

Abstract:
Recent cohorts of college enrollees are more likely to work, and work substantially more, than those of the past. October CPS data reveal that average labor supply among 18 to 22-year-old full-time undergraduates nearly doubled between 1970 and 2000, rising from 6 hours to 11 hours per week. In 2000 over half of these "traditional" college students were working for pay in the reference week, and the average working student worked 22 hours per week. After 2000, labor supply leveled off and then fell abruptly in the wake of the Great Recession to an average of 8 hours per week in 2009. This paper considers several explanations for the long-term trend of rising employment - including compositional change and rising tuition costs - and considers whether the upward trend is likely to resume when economic conditions improve.

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Parental Income and the Fruits of Labor: Variability in Homework Efficacy in Secondary School

Jonathan Daw
Research in Social Stratification and Mobility, forthcoming

Abstract:
Research in the sociology of education has shown that noncognitive traits are important predictors of educational outcomes and a mechanism of the intergenerational transmission of status. However, previous research on this topic typically posits that there is a constant effect of these traits with variable prevalences of these traits by socioeconomic status. Using time spent on homework as an example, I analyze income-based heterogeneity in homework efficacy, defined as the individual effect of study time on academic achievement, using a national U.S. probability sample of secondary students. Higher income students gain more knowledge from their homework time than their counterparts in all grades and all subjects except history, with greater group differences for math than for science and reading. These results are confirmed by models accounting for time-invariant unobserved heterogeneity in the 8th-10th, but not 10th-12th, grade windows. These results imply that increases in the amount of homework assigned may increase the socioeconomic achievement gap in math, science, and reading in secondary school.

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Social experiences in kindergarten and academic achievement in grade 1: A monozygotic twin difference study

Frank Vitaro et al.
Journal of Educational Psychology, forthcoming

Abstract:
The goal of this study was to examine how different types of social experiences in kindergarten relate to Grade 1 academic achievement, while controlling for possible genetic and shared environmental influences through the use of the monozygotic (MZ) twin difference method. Social experiences in kindergarten included relationship quality with the larger peer group (i.e., rejection and victimization), relationship quality with one's best friend, and relationship quality with the teacher. Control variables included parental hostility-coercion, child cognitive skills and externalizing problems, and equivalent social experiences in Grade 1. Participants consisted of 223 MZ twin pairs ages 6 years at Time 1 (T1) and 7 years at Time 2 (T2). Results showed that within-pair differences in peer rejection and in poor teacher-child relationship quality at T1 uniquely predicted differences in MZ twins' academic achievement at T2. Mechanisms that could account for the possible causal role of these social experiences in regard to children's school achievement are discussed.

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Estimating the Effect of Leaders on Public Sector Productivity: The Case of School Principals

Gregory Branch, Eric Hanushek & Steven Rivkin
NBER Working Paper, February 2012

Abstract:
Although much has been written about the importance of leadership in the determination of organizational success, there is little quantitative evidence due to the difficulty of separating the impact of leaders from other organizational components - particularly in the public sector. Schools provide an especially rich environment for studying the impact of public sector management, not only because of the hypothesized importance of leadership but also because of the plentiful achievement data that provide information on institutional outcomes. Outcome-based estimates of principal value-added to student achievement reveal significant variation in principal quality that appears to be larger for high-poverty schools. Alternate lower-bound estimates based on direct estimation of the variance yield smaller estimates of the variation in principal productivity but ones that are still important, particularly for high poverty schools. Patterns of teacher exits by principal quality validate the notion that a primary channel for principal influence is the management of the teacher force. Finally, looking at principal transitions by quality reveals little systematic evidence that more effective leaders have a higher probability of exiting high poverty schools.

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Adoption? Adaptation? Evaluating the Formation of Educational Expectations

Megan Andrew & Robert Hauser
Social Forces, December 2011, Pages 497-520

Abstract:
Sociologists have long used educational expectations to understand the complex mental processes underlying individuals' educational decision making. Yet, little research evaluates how students actually formulate their educational expectations. Status attainment theory asserts that students adopt their educational expectations early based on family background and social influences, and that their educational expectations are driven by a static mental construct as a result. In contrast, recent research based on Bayesian learning theory hypothesizes that students mostly adapt their educational expectations in light of new information about their academic potential. Comparing models of expectations formation in adolescence, we find that students' expectations do not derive from a static mental construct. However, students adapt their educational expectations only modestly and only in response to very large changes in grade point averages. Thus, adolescent educational expectations stabilize early and are rather persistent over time.

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Measuring the earnings returns to lifelong learning in the UK

Jo Blanden et al.
Economics of Education Review, forthcoming

Abstract:
This paper examines the earnings returns to learning that takes place following the conventional ‘school-to-work' stage of the life-course. We operationalise such ‘lifelong learning' as the attainment of certified qualifications in adulthood, following the completion of the first period of continuous full-time education. Using data from the British Household Panel Survey (BHPS) for the period 1991-2006, our approach and findings represent an important addition to the existing evidence base. By using annual data, we are able to employ the fixed effects estimator, which eliminates the problem of time-invariant unobserved heterogeneity. Our dynamic specification uses a lag structure to consider how earnings returns evolve in the medium and longer run, whilst also controlling for wage trends which were evident prior to qualification attainment. Our results show a medium-run return for women of 10% on hourly wages. For men, initial suggestions of a similar positive return are eliminated once pre-qualification trends are taken into account. This suggests that adult learning has a causal effect on women's subsequent earnings but, for men, any apparent gain is due to selection.

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Education determines a nation's health, but what determines educational outcomes? A cross-national comparative analysis

Arjumand Siddiqi et al.
Journal of Public Health Policy, February 2012, Pages 1-15

Abstract:
This study is premised on the notion that public health policy should address not only health itself, but also primary determinants of health. We examined the effect of national policies on educational outcomes, in particular, on adolescent reading literacy (ARL). We compared the effect of traditional policy indicators - national income and educational spending - with income inequality, a measure of redistributive policies. We used Organization for Economic Cooperation and Development (OECD) data that provide a rare opportunity to test policy effects after accounting for competing individual-, school-, and country-level explanations. Our sample consisted of 119 814 students, 5126 schools, and 24 countries. Multilevel/Hierarchical regression findings were striking: GDP had a significant, but negligible effect on ARL scores (β=0.002, SE=0.0008), while educational spending had no significant effect. By contrast, income inequality exhibited a larger inverse association (β=-1.15, SE=0.57). Among the wealthy nations in OECD, additional economic prosperity and educational spending is trumped by distribution of income for its effect on ARL. Our study yielded a striking result about education, a major determinant of health. Not only is income inequality a significant determinant of ARL scores, but direct spending on education and overall national economic prosperity are not.


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