Findings

Model Student

Kevin Lewis

June 27, 2012

The Behavioralist Goes to School: Leveraging Behavioral Economics to Improve Educational Performance

Steven Levitt et al.
NBER Working Paper, June 2012

Abstract:
A long line of research on behavioral economics has established the importance of factors that are typically absent from the standard economic framework: reference dependent preferences, hyperbolic preferences, and the value placed on non-financial rewards. To date, these insights have had little impact on the way the educational system operates. Through a series of field experiments involving thousands of primary and secondary school students, we demonstrate the power of behavioral economics to influence educational performance. Several insights emerge. First, we find that incentives framed as losses have more robust effects than comparable incentives framed as gains. Second, we find that non-financial incentives are considerably more cost-effective than financial incentives for younger students, but were not effective with older students. Finally, and perhaps most importantly, consistent with hyperbolic discounting, all motivating power of the incentives vanishes when rewards are handed out with a delay. Since the rewards to educational investment virtually always come with a delay, our results suggest that the current set of incentives may lead to underinvestment. For policymakers, our findings imply that in the absence of immediate incentives, many students put forth low effort on standardized tests, which may create biases in measures of student ability, teacher value added, school quality, and achievement gaps.

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Taking the Easy Way Out: How the GED Testing Program Induces Students to Drop Out

James Heckman et al.
Journal of Labor Economics, July 2012, Pages 495-520

Abstract:
The option to obtain a General Educational Development (GED) certificate changes the incentives facing high school students. This article evaluates the effect of three different GED policy innovations on high school graduation rates. A 6-point decrease in the GED pass rate produced a 1.3-point decline in high school dropout rates. The introduction of a GED certification program in high schools in Oregon produced a 4% decrease in high school graduation rates. Introduction of GED certificates for civilians in California increased the dropout rate by 3 points. The GED program induces students to drop out of high school.

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Debt and Graduation from American Universities

Rachel Dwyer, Laura McCloud & Randy Hodson
Social Forces, forthcoming

Abstract:
The goal of "college-for-all" in the United States has been pursued in an environment of rising tuition, stagnant grant aid and already strapped family budgets with the gap filled by college loans. College students are thus facing increasing levels of debt as they seek to develop their human capital and improve their career options. Debt is a useful resource for making needed investments. It is unique as a resource, however, because it must be repaid and can thus also increase vulnerabilities and limit options. We find that lower levels of educational debt do support college completion. However, additional educational debt beyond about $10,000 actually reduces the likelihood of college completion compared to lower levels of debt as the burden of repayment looms. Graduation likelihoods for students from the bottom 75% of the income distribution at public universities are especially influenced by debt. The article considers how the macro-level changes in financing societal functions influence the individual-level risks and vulnerabilities of life in a debt-based society.

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School-Entry Policies and Skill Accumulation Across Directly and Indirectly Affected Individuals

Kelly Bedard & Elizabeth Dhuey
Journal of Human Resources, Summer 2012, Pages 643-683

Abstract:
During the past half-century, there has been a trend toward increasing the minimum age a child must reach before entering school in the United States. States have accomplished this by moving the school-entry cutoff date earlier in the school year. The evidence presented in this paper shows that these law changes increased human capital accumulation and hence adult wages. Backing up the cutoff by one month increases average male hourly earnings by approximately 0.6 percent. The evidence also suggests that the majority of the cohort benefits from backing up the cutoff, not just those who must delay entry.

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Catholic schools, competition, and public school quality

Juliana Carattini et al.
Economics Letters, October 2012, Pages 334-336

Abstract:
Catholic schools compete with public schools but may also cream-skim. The endogeneity of private school enrollment necessitates 2SLS. Measures of Catholic sex abuse scandals instrument for Catholic enrollment. We find that competition from Catholic schools raises public school test scores.

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The evolution of public spending on higher education in a democracy

Alexander Haupt
European Journal of Political Economy, forthcoming

Abstract:
This paper analyses a political force that can cause an initial expansion of public spending on higher education and an ensuing decline in subsidies per student: the increase in the number, and thus voting power, of skilled parents. The rise of the skilled class leads to a majority for an initial expansion of public education spending. This expansion further boosts the number of skilled parents and, thus, future demand for higher education. The induced shift in demand implies that the initial subsidy per student becomes too expensive to be politically sustainable. The initial educational ‘take-off' provokes a backlash at the polls. A majority now successfully calls for higher private contributions to the costs of university education. Nevertheless, overall enrolment continues to rise. But equality of opportunity, that went up in the expansion period, declines afterwards.

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School Crowding, Year-Round Schooling, and Mobile Classroom Use: Evidence from North Carolina

Steven McMullen & Kathryn Rouse
Economics of Education Review, forthcoming

Abstract:
This study exploits a unique policy environment and a large panel dataset to evaluate the impact of school crowding on student achievement in Wake County, NC. We also estimate the effects of two education policy initiatives that are often used to address crowding: multi-track year-round calendars and mobile classrooms. We estimate a multi-level fixed effects model to identify effects that are not confounded by other school, family, and individual characteristics. Results suggest that severely crowded schools have a negative impact on reading achievement but have no discernable impact on math achievement. Both mobile classrooms and year-round calendars are found to have a small negative impact on achievement in the absence of crowding, but a positive impact in crowded schools, though these policies are only able to partially offset the negative impact of crowding.

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Effects of Welfare Reform on Education Acquisition of Adult Women

Dhaval Dave, Hope Corman & Nancy Reichman
Journal of Labor Research, June 2012, Pages 251-282

Abstract:
Education beyond traditional ages for schooling is an important source of human capital acquisition among adult women. Welfare reform, which began in the early 1990s and culminated in the passage of the Personal Responsibility and Work Opportunity Reconciliation Act in 1996, promoted work rather than education acquisition for this group. Exploiting variation in welfare reform across states and over time and using relevant comparison groups, we undertake a comprehensive study of the effects of welfare reform on adult women's education acquisition. We first estimate effects of welfare reform on high school drop-out of teenage girls, both to improve upon past research on this issue and to explore compositional changes that may be relevant for our primary analyses of the effects of welfare reform on education acquisition among adult women. We find that welfare reform significantly reduced the probability that teens from disadvantaged families dropped out of high school, by about 15%. We then estimate the effects of welfare reform on adult women's school enrollment and conduct numerous specification checks, investigate compositional selection and policy endogeneity, explore lagged effects, stratify by TANF work incentives and education policies, consider alternative comparison groups, and explore the mediating role of work. We find robust and convincing evidence that welfare reform significantly decreased the probability of college enrollment among adult women at risk of welfare receipt, by at least 20%. It also appears to have decreased the probability of high school enrollment among this group, on the same order of magnitude. Future research is needed to determine the extent to which this behavioral change translates to future economic outcomes.

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Beyond Levels and Growth: Estimating Teacher Value-Added and its Persistence

Josh Kinsler
Journal of Human Resources, Summer 2012, Pages 722-753

Abstract:
The levels and growth achievement functions make extreme and diametrically opposed assumptions about the rate at which teacher inputs persist. I first show that if these assumptions are incorrect, teacher value-added estimates can be significantly biased. I then develop a tractable, cumulative model of student achievement that allows for the joint estimation of unobserved teacher quality and its persistence. The model can accommodate varying persistence rates, student heterogeneity, and time-varying teacher attributes. I implement the proposed methodology using schooling data from North Carolina, and find that only a third of the contemporaneous teacher effect survives into the next grade.

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Who Benefits from KIPP?

Joshua Angrist et al.
Journal of Policy Analysis and Management, forthcoming

Abstract:
The nation's largest charter management organization is the Knowledge is Power Program (KIPP). KIPP schools are emblematic of the No Excuses approach to public education, a highly standardized and widely replicated charter model that features a long school day, an extended school year, selective teacher hiring, strict behavior norms, and emphasizes traditional reading and math skills. No Excuses charter schools are sometimes said to target relatively motivated high achievers at the expense of students who are more difficult to teach, including limited English proficiency (LEP) and special education (SPED) students, as well as students with low baseline achievement levels. We use applicant lotteries to evaluate the impact of KIPPAcademy Lynn, a KIPP school in Lynn, Massachusetts that typifies the KIPP approach. Our analysis focuses on special needs students that may be underserved. The results show average achievement gains of 0.36 standard deviations in math and 0.12 standard deviations in reading for each year spent at KIPPLynn, with the largest gains coming from the LEP, SPED, and low-achievement groups. Average reading gains are driven almost entirely by SPED and LEP students, whose reading scores rise by roughly 0.35 standard deviations for each year spent at KIPPLynn.

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The Market Model and the Growth and Decline of Academic Fields in U.S. Four-Year Colleges and Universities, 1980-2000

Steven Brint et al.
Sociological Forum, June 2012, Pages 275-299

Abstract:
Conventional sociological accounts of the rise and fall of academic fields have been challenged by accounts based on the idea of market-responsive change. In this article, we focus on the period 1980-2000, the period during which, according to its proponents, the market model of change became dominant in academe. We find changes in the student market to be strongly associated with increased institutionalization of academic fields. We also find the preferences of donors to be associated with increased institutionalization of academic fields. By contrast, we find relatively little support for labor market signals or changes in federal funding priorities as important influences on the institutionalization of academic fields. We find that higher-status institutions are more market responsive than lower-status institutions.

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The Aftermath of Accelerating Algebra: Evidence from a District Policy Initiative

Charles Clotfelter, Helen Ladd & Jacob Vigdor
NBER Working Paper, June 2012

Abstract:
In 2002/03, the Charlotte-Mecklenburg Schools in North Carolina initiated a broad program of accelerating entry into algebra coursework. The proportion of moderately-performing students taking algebra in 8th grade increased from half to 85%, then reverted to baseline levels, in the span of just five years. We use this policy-induced variation to infer the impact of accelerated entry into algebra on student performance in math courses as students progress through high school. Students affected by the acceleration initiative scored significantly lower on end-of-course tests in Algebra I, and were either significantly less likely or no more likely to pass standard follow-up courses, Geometry and Algebra II, on a college-preparatory timetable. Although we also find that the district assigned teachers with weaker qualifications to Algebra I classes in the first year of the acceleration, this reduction in teacher quality accounts for only a small portion of the overall effect.

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The Effect of Tracking Students by Ability into Different Schools: A Natural Experiment

Nina Guyon, Eric Maurin & Sandra McNally
Journal of Human Resources, Summer 2012, Pages 684-721

Abstract:
The tracking of pupils by ability into elite and nonelite schools represents a controversial policy in many countries. There is no consensus on how large the elite track should be and little agreement on the effects of any further increase in its size. This paper presents a natural experiment where the increase in the size of the elite track was followed by a significant improvement in average educational outcomes. This experiment provides a rare opportunity to isolate the overall effect of allowing entry to the elite track for a group that was previously only at the margin of being admitted.

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School Accountability and Principal Mobility: How No Child Left Behind Affects the Allocation of School Leaders

Danielle Li
MIT Working Paper, October 2011

Abstract:
The move toward increased school accountability may substantially affect the career risks that school leaders face without providing commensurate changes in pay. Since effective school leaders likely have significant scope in choosing where to work, these uncompensated risks may undermine the efficacy of accountability reforms by limiting the ability of low-performing schools to attract and retain effective leaders. This paper empirically evaluates the economic importance of principal mobility in response to accountability by analyzing how the implementation of No Child Left Behind (NCLB) in North Carolina affected principal mobility across North Carolina schools and how it reshaped the distribution of high-performing principals across low- and high-performing schools. Using value-added measures of principal performance and variation in pre-period student demographics to identify schools that are likely to miss performance targets, I show that NCLB decreases average principal quality at schools serving disadvantaged students by inducing more able principals to move to schools less likely to face NCLB sanctions. These results are consistent with a model of principal-school matching in which school districts are unable to compensate principals for the increased likelihood of sanctions at schools with historically low-performing students.

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Summer school effects in a randomized field trial

Keith Zvoch & Joseph Stevens
Early Childhood Research Quarterly, forthcoming

Abstract:
This field-based randomized trial examined the effect of assignment to and participation in summer school for two moderately at-risk samples of struggling readers. Application of multiple regression models to difference scores capturing the change in summer reading fluency revealed that kindergarten students randomly assigned to summer school outperformed their control group peers by .60 of a standard deviation in an intent-to-treat analysis. For the first grade sample, the intent-to-treat estimate was over three quarters of a standard deviation. The contrast in performance was greater when the comparison was focused more specifically on the change in literacy between treatment participants (i.e., randomly assigned students who actually attended summer school) and students randomly assigned to the control group and in analyses that explicitly adjusted for non-compliance with treatment assignment. These results support the experiential intuition of school district personnel regarding the benefits of summer school and suggest that targeted summer instruction can be a useful strategy to support student learning over the summer months.

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Corrupting Learning: Evidence from Missing Federal Education Funds in Brazil

Claudio Ferraz, Frederico Finan & Diana Moreira
NBER Working Paper, June 2012

Abstract:
This paper examines if money matters in education by looking at whether missing resources due to corruption affect student outcomes. We use data from the auditing of Brazil's local governments to construct objective measures of corruption involving educational block grants transferred from the central government to municipalities. Using variation in the incidence of corruption across municipalities and controlling for student, school, and municipal characteristics, we find a significant negative association between corruption and the school performance of primary school students. Students residing in municipalities where corruption in education was detected score 0.35 standard deviations less on standardized tests, and have significantly higher dropout and failure rates. Using a rich dataset of school infrastructure and teacher and principal questionnaires, we also find that school inputs such as computer labs, teaching supplies, and teacher training are reduced in the presence of corruption. Overall, our findings suggest that in environments where basic schooling resources are lacking, money does matter for student achievement.

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The Effect of Social Programs and Exposure to Professionals on the Educational Aspirations of the Poor

Carlos Chiapa, José Luis Garrido & Silvia Prina
Economics of Education Review, forthcoming

Abstract:
Investment in human capital is an important tool for reducing poverty. However, the poor may lack the capacity to aspire, which often results in underinvestment in their children's education. This paper studies the effect of a social program on the educational aspirations poor parents have for their children, and explores the role of exposure to educated professionals as a possible channel for increasing these aspirations. First, using differences-in-differences, we show that the Mexican antipoverty program PROGRESA raises the educational aspirations of beneficiary parents for their children of a third of a school year. Then, exploiting PROGRESA's mandated differential exposure to professionals, using triple differences, we find evidence suggesting that educational aspirations for children from high-exposure households are almost half of a school year higher six months after the start of the program. Finally, we show that there is a positive correlation between parental aspirations and children's educational attainment.

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Education or Creativity: What Matters Most for Economic Performance?

Emanuela Marrocu & Raffaele Paci
Economic Geography, forthcoming

Abstract:
There is a large consensus among social researchers on the positive role that human capital plays in economic performances. The standard way to measure the human capital endowment is to consider the educational attainments of the resident population, usually the share of people with a university degree. Florida (2002) suggested a different measure of human capital-the "creative class"-based on the actual occupations of individuals in specific jobs like science, engineering, the arts, culture, and entertainment. However, the empirical analyses conducted so far have overlooked a serious measurement problem concerning the clear definition of the education and creativity components of human capital. This article aims to disentangle this issue by proposing a disaggregation of human capital into three nonoverlapping categories: creative graduates, bohemians, and noncreative graduates. Using a spatial error model to account for spatial dependence, we assess the concurrent effect of the human capital indicators on total factor productivity for 257 regions of EU27. Our results indicate that highly educated people working in creative occupations are the most relevant component in explaining production efficiency, noncreative graduates exhibit a lower impact, and bohemians do not show a significant effect on regional performance. Moreover, a significant influence is exerted by technological capital, cultural diversity, and industrial and geographic characteristics, thus providing robust evidence that a highly educated, innovative, open, and culturally diverse environment is becoming more central for productivity enhancements.

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The Effects of Home Computers on Educational Outcomes: Evidence from a Field Experiment with Community College Students

Robert Fairlie & Rebecca London
Economic Journal, June 2012, Pages 727-753

Abstract:
There is no clear theoretical prediction regarding whether home computers are an important input in the educational production function. To investigate the hypothesis, we conduct a field experiment involving the random provision of free computers to low-income community college students for home use. Although estimates for a few measures are imprecise and cannot rule out zero effects, we find some evidence that the treatment group achieved better educational outcomes than the control group. The estimated effects, however, are not large and are smaller than non-experimental estimates. There is also some evidence that benefits from home computers increase with distance to campus.

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A Controlled Study of Clicker-Assisted Memory Enhancement in College Classrooms

Amy Shapiro & Leamarie Gordon
Applied Cognitive Psychology, forthcoming

Abstract:
Personal response systems, commonly called ‘clickers', are widely used in secondary and post-secondary classrooms. Although many studies show they enhance learning, experimental findings are mixed, and methodological issues limit their conclusions. Moreover, prior work has not determined whether clickers affect cognitive change or simply alert students to information likely to be on tests. The present investigation used a highly controlled methodology that removed subject and item differences from the data to explore the effect of clicker questions on memory for targeted facts in a live classroom and to gain a window on the cognitive processes affecting the outcome. We found that in-class clicker questions given in a university psychology class augmented performance on delayed exam questions by 10-13%. Experimental results and a class survey indicate that it is unlikely that the observed effects can be attributed solely to attention grabbing. Rather, the data suggest the technology invokes the testing effect.


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