Schooling and higher education

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School tracking and intergenerational social mobility

Postponing school tracking can increase social mobility without significant adverse effects on educational achievement

10.15185/izawol.56 56 Pekkarinen, T

by Tuomas Pekkarinen

The goal of school tracking (assigning students to different types of school by ability) is to increase educational efficiency by creating more homogeneous groups of students that are easier to teach. However, there are concerns that, if begun too early in the schooling process, tracking may improve educational attainment at the cost of reduced intergenerational social mobility. Recent empirical evidence finds no evidence of an efficiency–equality trade-off when tracking is postponed.

Do youth mentoring programs change the perspectives and improve the life opportunities of at-risk youth?

While most effects are positive, they tend to be modest and fade over time—in addition, some mentoring programs can backfire

10.15185/izawol.62 62 Rodríguez-Planas, N

by Núria Rodríguez-Planas

Mentoring programs such as Big Brothers Big Sisters of America have been providing positive role models and building social skills for more than a century. However, most formal mentoring programs are relatively novel and researchers have only recently begun to rigorously evaluate their impact on changing at-risk youth’s perspectives and providing opportunities for them to achieve better life outcomes. While a variety of mentoring and counseling programs have emerged around the world in recent years, knowledge of their effectiveness remains incomplete.

How to attract foreign students

International student mobility can be good for migrating students, their home country, the host country, and those remaining at home

10.15185/izawol.36 36 Chevalier, A

by Arnaud Chevalier

To expand the skilled workforce, countries need to attract skilled migrants. One way of doing this is by attracting and retaining international students. Empirical evidence suggests that concerns about brain drain—that is, the emigration of highly qualified workers—are overblown and that student migration can positively affect economic growth in both sending and receiving countries. However, migrants themselves reap most of the gains, through higher earnings. So that in the end, international student mobility can be beneficial for all participants: migrating students and those who remain at home, as well as home and host societies.

Is the return to education the same for everybody?

While a four-year college degree is financially beneficial for most people, it is not necessarily the best option for everyone

10.15185/izawol.92 92 Webber, D

by Douglas Webber

A postsecondary degree is often held up as the one sure path to financial success. But is that true regardless of institutional quality, discipline studied, or individual characteristics? Is a college degree always worth the cost? Students deciding whether to invest in college and what field to study may be making the most important financial decision of their lives. The return to education varies greatly by institutional quality, discipline, and individual characteristics. Estimating the returns for as many options as possible, and making that information as transparent as possible, are paramount in helping prospective students make the best decision.

University study abroad and graduates’ employability

There is a positive association between study abroad and graduates’ job prospects

10.15185/izawol.109 109 Di Pietro, G

by Giorgio Di Pietro

In recent decades, the number of university students worldwide who have received some part of their education abroad has been rising rapidly. Despite the popularity of international student exchange programs, however, debate continues over what students gain from this experience. A major advantage claimed for study abroad programs is that they can enhance employability by providing graduates with the skills and experience employers look for. These programs also increase the probability that graduates will work abroad, and so may especially benefit students willing to pursue an international career. However, most of the evidence is qualitative and based on small samples.

The promises and pitfalls of universal early education

Universal early education can be beneficial, and more so for the poor, but quality matters

10.15185/izawol.116 116 Cascio, E

by Elizabeth U. Cascio

There is widespread interest in universal early education, both to promote child development and to support maternal employment. Positive long-term findings from small-scale early education interventions for low-income children in the US have greatly influenced the public discussion. However, such findings may be of limited value for policymakers considering larger-scale, more widely accessible programs. Instead, the best insight into the potential impacts of universal early education comes from analysis of these programs themselves, operating at scale. This growing research base suggests that universal early education can benefit both children and families, but quality matters.

Do higher levels of education and skills in an area benefit wider society?

Education benefits individuals, but the societal benefits are likely 
even greater

10.15185/izawol.130 130 Winters, J

by John V. Winters

Formal schooling increases earnings and provides other individual benefits. However, societal benefits of education may exceed individual benefits. Research finds that increased average education levels in an area are correlated with higher earnings, even for locals with relatively little education. Science, technology, engineering, and mathematics (STEM) graduates appear to have especially strong external effects, due to their role in stimulating innovation and economic growth. Several strategies to test for causality find human capital externalities do exist.

Impact of bilingual education on student achievement

Language development programs should focus on quality rather than the language in which instruction is provided

10.15185/izawol.131 131 Chin, A

by Aimee Chin

More than 4.4 million students enrolled in US public schools participate in English language learner programs because of linguistic barriers to learning in regular classrooms. Whether native language instruction should be used in these programs is a contentious issue. Recent studies, using credible research designs for estimating causal impacts, find that bilingual education programs (which use some native language instruction) and English-only programs are not significantly different in their impact on standardized test performance. This finding suggests that it is time to change the focus from use of the native language to program quality.

Migrants and educational achievement gaps

Avoiding segregation and compensating for parental disadvantage can reduce migrants’ educational achievement gaps

10.15185/izawol.146 146 Entorf, H

by Horst Entorf

As global migration flows increase, so do the number of migrant students in host country schools. Yet migrants’ achievement scores lag well behind those of their native-born schoolmates. Performance gaps are explained largely by differences in migrant parents’ socio-economic background, cultural capital, and language skills. Education policy needs to focus on language teaching, parental involvement, diversity training, and beneficial social interaction between immigrant and native-born populations. With the wealth of many industrialized countries threatened by a lack of qualified labor, education of immigrants should be an important priority.

The quantity–quality fertility–education trade-off

Policies to reduce fertility in developing countries generally boost education levels, but only slightly

10.15185/izawol.143 143 Liu, H

by Haoming Liu

At the national level, it has long been observed that a country’s average education level is negatively associated with its total fertility rate. At the household level, it has also been well documented that children’s education is negatively associated with the number of children in the family. Do these observations imply a causal relationship between the number of children and the average education level (the quantity–quality trade-off)? A clear answer to this question will help both policymakers and researchers evaluate the total benefit of family planning policies, both policies to lower fertility and policies to boost it.

The boom in university graduates and the risk of underemployment

Better information on university quality may reduce underemployment and overeducation in developing countries

10.15185/izawol.165 165 Yamada, G

by Gustavo A. Yamada

As the number of secondary school graduates rises, many developing countries expand the supply of public and private universities or face pressure to do so. However, several factors point to the need for caution, including weak job markets, low-quality university programs, and job–education mismatches. More university graduates in this context could exacerbate unemployment, underemployment, and overeducation of professionals. Whether governments should regulate the quantity or quality of university programs, however, depends on the specific combination of factors in each country.

The impacts of shortening secondary school duration

Shortening secondary school duration may increase the skilled workforce in aging societies

10.15185/izawol.166 166 Thomsen, S

by Stephan L. Thomsen

The main goal of secondary school education in developed countries is to prepare students for higher education and the labor market. That demands high investments in study duration and specialized fields to meet rising skill requirements. However, these demands for more education are in opposition to calls for early entry to the labor market, to lengthen working lives to meet the rising costs associated with an aging population and to enable the intergenerational transfer of skills. One way to lengthen working lives is to shorten the duration of secondary school, an option recently implemented in Canada and Germany. The empirical evidence shows mixed effects.

The educational effects of school start times

Delaying secondary school start times can be a cost-effective policy to improve students’ grades and test scores

10.15185/izawol.181 181 Shapiro, T

by Teny Maghakian Shapiro

The combination of changing sleep patterns in adolescence and early school start times leaves secondary school classrooms filled with sleep-deprived students. Evidence is growing that having adolescents start school later in the morning improves grades and emotional well-being, and even reduces car accidents. Opponents cite costly adjustments to bussing schedules and decreased time after school for jobs, sports, or other activities as reasons to retain the status quo. While changing school start times is not a costless policy, it is one of the easiest to implement and least expensive ways of improving academic achievement.

University dropouts and labor market success

Dropping out of university can be more advantageous than not having enrolled in university at all

10.15185/izawol.182 182 Schnepf, S

by Sylke V. Schnepf

With university education continuing to expand worldwide, university dropouts will make up a large group in future labor markets. Dropping out is routinely viewed as a negative indicator. However, data on university dropouts does not generally provide information on their labor market outcomes, so empirical evidence is sparse. The studies that have examined the issue show that dropping out can be more of an advantage than not having enrolled in university at all. Many dropouts are more likely than upper secondary school graduates with no university education to progress in their careers. And many graduate later in their life.

Class size: Does it matter for student achievement?

Smaller classes are often associated with increased achievement, but the evidence is far from universal

10.15185/izawol.190 190 Jepsen, C

by Christopher Jepsen

Numerous economic studies have considered the relationship between class size and student achievement, the majority of which have focused on elementary schools in the US and Europe. While the general finding is that smaller classes are associated with increased student achievement, a few high-quality studies find no relationship. Further, empirical research on the costs and benefits of smaller classes concludes that other education policies, such as tutoring, early childhood programs, or improving teacher quality would be better investments.

Immigrants in the classroom and effects on native children

Having immigrant children in the classroom may sometimes, but not always, harm educational outcomes of native children

10.15185/izawol.194 194 Jensen, P

by Peter Jensen

Many countries are experiencing increasing inflows of immigrant students. This raises concerns that having a large share of students for whom the host country language is not their first language may have detrimental effects on the educational outcomes of native children. However, the evidence is mixed, with some studies finding negative effects, and others finding no effects. Whether higher concentrations of immigrant students have an effect on native students differs across countries according to factors such as organization of the school system and immigrants’ socio-economic background.

Evaluating the efficiency of public services

Differences in efficiency in public services can offer clues about good practice

10.15185/izawol.196 196 Johnes, G

by Geraint Johnes

Efficiency is an important consideration for those who manage public services. Costs vary with output and with a variety of other factors. In the case of higher education, for example, factors include quality, student demographics, the scale and scope of the higher education provider, and the size and character of the real estate. But even when taking all these factors into account, costs vary across providers because of differences in efficiency. Such differences offer clues about good practice that can lead to improvements in the system as a whole. The role of efficiency is illustrated by reference to higher education institutions in England.

The role of preschool in reducing inequality

Preschool improves child outcomes, especially for disadvantaged children

10.15185/izawol.219 219 Waldfogel, J

by Jane Waldfogel

Children from disadvantaged families have lower levels of school readiness when they enter school than do children from more advantaged families. Many countries have tried to reduce this inequality through publicly provided preschool. Evidence on the potential of these programs to reduce inequality in child development is now quite strong. Long-term studies of large publicly funded programs in Europe and Latin America, and newer studies on state and local prekindergarten programs implemented more recently in the US, find that the programs do improve outcomes for young children, particularly for those from disadvantaged families.

What is the economic value of literacy and numeracy?

Basic skills in literacy and numeracy are essential for success in the labor market

10.15185/izawol.229 229 Vignoles, A

by Anna Vignoles

Even in OECD countries, where an increasing proportion of the workforce has a university degree, the value of basic skills in literacy and numeracy remains high. Indeed, in some countries the return for such skills, in the form of higher wages, is sufficiently large to suggest that they are in high demand and that there is a relative scarcity. Policymakers need robust evidence in order to devise interventions that genuinely improve basic skills, not just of new school leavers entering the market, but also of the existing workforce. This would lead to significant improvements in the population that achieves a minimum level of literacy and numeracy.

Parental employment and children’s academic achievement

Quality of parental time spent with children is more important than quantity

10.15185/izawol.231 231 Schildberg-Hörisch, H

by Hannah Schildberg-Hörisch

Female labor market participation rates have increased substantially in many countries over the last decades, especially those of mothers with young children. This trend has triggered an intense debate about its implications for children’s well-being and long-term educational outcomes. The overall effect of maternal and paternal employment on children’s cognitive and educational attainment is not obvious: on the one hand, children may benefit from higher levels of family income, on the other hand, parental employment reduces the amount of time parents spend with their children.

Income contingent loans in higher education financing

Internationally, there has been a student financing revolution towards income contingent loans

10.15185/izawol.227 227 Chapman, B

by Bruce Chapman

Around nine countries currently use a national income contingent loan (ICL) scheme for higher education tuition using the income tax system. Increased international interest in ICL validates an examination of its costs and benefits relative to the traditional financing system, government-guaranteed bank loans (GGBLs). Bank-type loans exhibit poor economic characteristics: namely, repayment hardships for the disadvantaged, and default. This damages credit reputations and can be associated with high taxpayer subsidies. ICLs avoid these problems, but effective collection of debt requires a sophisticated mechanism.

University autonomy: Improving educational output

Universities deliver more competent graduates and higher quality research if they are more autonomous and well-funded

10.15185/izawol.240 240 Ritzen, J

by Jo Ritzen

University autonomy and funding is an important aspect in university-level education due to its impact on graduates’ competencies, and on the quality and quantity of research produced. Political factors influence the amount of autonomy allotted to public universities in specific countries. There is sufficient evidence to suggest that an increase in autonomy for universities would provide better educational outcomes and have a direct impact on labor market productivity. However, the debate on autonomy has been overshadowed by discussions on tuition fees and student aid in political circles.

Age at school entry: How old is old enough?

A child’s age at school entry matters, and the implications of policy changes can have long-lasting effects

10.15185/izawol.247 247 Dhuey, E

by Elizabeth Dhuey

Laws on age at school entry affect student achievement and often change for a number of reasons. Older students are more mature and ready to learn. This can have positive impacts on academic, employment, and earnings outcomes. The costs of holding children back include another year of childcare expenses or income forgone by the caregiver parent. Entering the workforce one year later also has implications for lifetime earnings and remittances to governments. School-entry policies could be a useful tool in increasing student achievement, but the short- and long-term impacts need to be better understood.

Income inequality and social origins

Promoting intergenerational mobility can make societies more egalitarian

10.15185/izawol.261 261 Cappellari, L

by Lorenzo Cappellari

Income inequality has been rising in many countries. Is this bad? One way to decide is to look at the change in incomes across generations (intergenerational mobility) and, more generally, at the extent to which income differences among individuals are traceable to their social origins. Inequalities that reflect factors largely out of one’s control—such as local schools and communities—require attention in order to reduce income inequality. Evidence shows a negative association between income inequality and intergenerational mobility. The debate on whether community effects exert additional effects is still open.

Can higher education reduce inequality in developing countries?

Expanding higher education might solve rising youth unemployment and widening inequality in Africa

10.15185/izawol.273 273 Shimeles, A

by Abebe Shimeles

Developing countries often face two well-known structural problems: high youth unemployment and high inequality. In recent decades, policymakers have increased the share of government spending on education in developing countries to address both of these issues. The empirical literature offers mixed results on which type of education is most suitable to improve gainful employment and reduce inequality: is it primary, secondary, or tertiary education? Investigating recent literature on the returns to education in selected developing countries in Africa can help to answer this question.

How manipulating test scores affects school accountability and student achievement

Standardized testing can create incentives to manipulate test results and generate misleading indicators for public policy

10.15185/izawol.295 295 Battistin, E

by Erich Battistin

Standardized testing has become the accepted means of measuring a school’s quality. However, the associated rise in test-based accountability creates incentives for schools, teachers, and students to manipulate test scores. Illicit behavior may also occur in institutional settings where performance standards are weak. These issues are important because inaccurate measurement of student achievement leads to poor or ineffective policy conclusions. The consequences of mismeasured student achievement for policy conclusions have been documented in many institutional contexts in Europe and North America, and guidelines can be devised for the future.

Do schooling reforms improve long-term health?

It is difficult to find consistent evidence that schooling reforms provide health benefits

10.15185/izawol.306 306 Madden, D

by David Madden

A statistical association between more education and better health outcomes has long been observed, but in the absence of experimental data researchers have struggled to find a causal effect. Schooling reforms such as raising school leaving age, which have been enacted in many countries, can be viewed as a form of natural experiment and provide a possible method of identifying such an effect. However, the balance of evidence so far is that these reforms have had little impact on long-term health. Thus, policymakers should be cautious before anticipating a health effect when introducing reforms of this nature.

Can universal preschool increase the labor supply of mothers?

The success of universal preschool education depends crucially on the policy parameters and specific country context

10.15185/izawol.312 312 Cattan, S

by Sarah Cattan

Since the 1970s, many countries have established free or highly subsidized education for all preschool children in the hope of improving children’s learning and socio-economic life chances and encouraging mothers to join the labor force. Evaluations reveal that these policies can increase maternal employment in the short term and may continue to do so even after the child is no longer in preschool by enabling mothers to gain more job skills and increase their attachment to the labor force. However, their effectiveness depends on the policy design, the country context, and the characteristics of mothers of preschoolers.

How important is career information and advice?

Students’ decisions about their education can be, but are not always, improved by providing them with more information

10.15185/izawol.317 317 McNally, S

by Sandra McNally

The quantity and quality of educational investment matter for labor market outcomes such as earnings and employment. Yet, not everyone knows this, and navigating the education system can be extremely complex both for students and their parents. A growing economic literature has begun to test whether interventions designed to improve information about the costs and benefits of education and application processes have an effect on students’ behavior. So far, findings have been mixed, although the positive findings arising from some very carefully targeted interventions give cause for hope.