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Measuring the Education Function of Government in the United States

Measuring the Education Function of Government in the United States. Michael S. Christian U.S. Bureau of Economic Analysis. Input and Volume Approaches. Public education currently measured in United States using input approach Value of output equals cost of inputs

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Measuring the Education Function of Government in the United States

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  1. Measuring the Education Function of Government in the United States Michael S. Christian U.S. Bureau of Economic Analysis

  2. Input and Volume Approaches • Public education currently measured in United States using input approach • Value of output equals cost of inputs • Assumes productivity is constant and zero • Direct volume measurement allows for changes in productivity

  3. Elementary and Secondary • Most straightforward volume measure is simple count of students • Grew at annual 0.7% rate 1980-2001 • Input measure grew 2.4% • Assumes all students are equal outputs • Assumes quality of education is constant

  4. Special Education • Growth in special education • 9.4% of students in 1980, 12.1% in 2001 • Chambers et al (2004): special-ed students twice as expensive • Count special-ed students double • Increases growth rate from 0.73% to 0.85%

  5. School Quality • Improvement in school quality • Student outcomes (test scores) • Quality of school inputs

  6. Test Scores • Test scores • 12th grade math scores improved by about one third standard deviation over 1982-99 • How should we use this to adjust volume? • What is the rate of substitution between years of education and cognitive skill?

  7. Test Scores to Years of Education • Use effect of education on test scores • Takes 3.3 years for average NAEP scores to rise 1 cross-sectional deviation • 1 standard deviation = 3.3 years education • 1/3 s.d. increase in 12th grade scores: 12 years in 1999 = 13.1 years in 1982 • Upper-bound adjustment

  8. Adjusting With Test Scores • Test scores adjustment increases growth from 0.85% to 1.22% • Adjusting for raw scores assumes all improvements are caused by schools • Holding parents’ education constant reduces adjusted growth rate to 1.00%

  9. School Inputs • Quality of school inputs • Pupil-teacher ratio fell from 18.7 in 1980 to 15.9 in 2001 • Inexperienced (0-1 years) teachers rose from 5.3% in 1980 to 8.8% in 2000 • How do these changes affect the quality of education?

  10. School Inputs to Years of Education • Huge academic literature measures effects of school inputs on test scores • Multiply effects by substitution rate between test scores and years of education to make quality adjustment

  11. Adjusting with School Inputs • Literature on school inputs • Teacher experience important • Class size controversial • Not much evidence for others • Adjusting for class size, experience increases growth 0.85% to 1.06%

  12. Summary of Adjustments

  13. Elementary/Secondary Measures

  14. All Levels of Education (1) • Total education volume measure • Volume measures for all of elementary/ secondary, instruction part of higher • Input measures for rest of higher, “other” • Combined using Fisher index • Result is 90/10 volume/input hybrid index

  15. All Levels of Education (2)

  16. All Levels of Education (3)

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