Archive for the ‘Education’ Category

Solow on education

Thursday, June 16th, 2011

MIT economist Robert Solow participated in a recent IMF conference on “Macro and Growth Policies in the Wake of the Crisis”. Camilla Andersen interviewed him for the IMF publication Finance & Development, asking “What is needed to put people back to work? The role of education in the economic growth of middle-income and low-income countries is an important issue.”

Here is Professor Solow’s response:

We economists tend to measure education by input, not output. We count how many years people have been in school. Instead of worrying so much about quantities of education, we ought to be thinking about the content of the education. What is it that primary school or secondary school kids in poor and middle-income countries need to know? This is not necessarily what they are being taught.

And by the way, the same holds for advanced countries and the United States. We measure our success in generating an educated population in terms of the fraction of the age group that is in college. I would be very interested in other kinds of postsecondary education that are skills-based and would equip people for the jobs that are likely to be available.

That is going to require that employers be involved in the planning of that sort of education. For the United States, and perhaps for much of the world, that is a wholly new idea.

Camilla Andersen, “Rethinking Economics in a Changed World“, Finance & Development (June 2011).

Anderson interviewed two other Nobel laureates – NYU economist Michael Spence and Columbia economist Joseph Stiglitz – and reports their comments as well.

Schooling is often included as an explanatory variable in models of economic growth, because it is believed to be an important determinant of technical progress.

Robert Solow (born 1924) is famous for the “Solow residual”, known also as “total factor productivity”, which is assumed to be a measure of technical change. More accurately, it is what is left ‘unexplained’ after regressing GDP on inputs, i.e. the residual of an aggregate production function.

TdJ has insisted, in numerous posts, that aggregate production functions – and measures derived from them – can only be understood as faith, not science. These posts are titled “economics as faith”; one of them focuses on attempts to measure technical change.

schools in China

Thursday, June 9th, 2011

In the regular Chinese school system, students did not speak in class; often they did not even take notes until the teacher told them to. They studied a set curriculum determined by a government committee. Teachers pitted students against one another to make them study harder, and the entire system revolved around tests – a test to get into a good middle school, then a good high school, and finally a good college or any college at all. Like the imperial civil service exam, the educational system was designed to reward the few. Every year, the equivalent of only 11 percent of the freshman-age population entered college. Students who fell off that track were channeled into vocational schools to learn employable skills like machine tool operation and auto repair, but the curriculum was generally so outdated that the schools functioned more like holding pens for the students until they went out to work.

China is trying to reform its education system. Some teachers have embraced ‘quality education’, which emphasizes student creativity and initiative over rote learning. To that end, richer, more progressive schools have introduced electives such as arts and music. Making higher education more accessible is another goal: In recent years, the government has sharply expanded college enrollment. But education remains one of the most conservative areas of Chinese society, burdened by hidebound teachers and administrators, political constraints, and a historical obsession with test scores.

Leslie T. Chang, Factory Girls: Voices from the Heart of Modern China (Picador, 2010), pp. 182-183.

The book is interesting throughout. Ms Chang documents the lives of two young migrant workers in Dongguan, an industrial city in central Guangdong province – near Hong Kong, on the mainland in the Pearl River Delta. The title of the first edition (hardcover, 2008) is Factory Girls: From Village to City in a Changing China. Leslie Chang is a Chinese-American journalist who lived ten years in China as correspondent for the Wall Street Journal.

Sweden’s finance minister on the US budget debate

Wednesday, April 20th, 2011

Questions for Sweden’s finance minister, Anders Borg, on the US budget mess, and comparisons with Sweden.

Queston: Have you been following the budget debate here in the United States? What’s your sense as an outside observer?

Response: When you look at fiscal restructuring — what the U.S. needs to do — it is very clear that they need to increase taxes and cut expenditures. The most obvious thing to do would be to introduce a VAT. Look at the U.K. They are run by a Tory government — they increased the VAT. Look at Greece — it’s a Social Democratic government, they’ve increased VAT. All of these countries have increased VAT because it’s a broad-based tax with low costs and limited impact on growth.

It’s also quite clear that the U.S. doesn’t have control over its healthcare sector. The cost control of Medicare and Medicaid doesn’t really work. We’ve all seen the Congressional Budget Office projections so it is quite obvious that you need to strengthen the revenue side, but also have much better control of the expenditure side.

Question: I’m not sure to what degree people in Sweden are aware of this, but in U.S. political debates, your country is often used as a kind of code word for socialism, high taxes and a generous welfare state. Do you think this view Americans have of Sweden is still accurate?

Response: During [the Moderate Party's] period in government, we’ve cut taxes quite substantially. For ordinary people, we’ve cut them the most. We’ve also been restructuring our social welfare system. But our idea is that you can keep social cohesion by giving priority to education, healthcare. Everyone, regardless of income can get good healthcare and good education. We think that we are modernizing the Swedish model, making it more flexible, and trying to keep as much social cohesion as we can.

Joshua Keating, “Sweden’s finance minister on the Portugal bailout, Europe’s recovery, and America’s budget mess“, Passport (FP blog), 18 April 2011.

HT: Mark Thoma.

Sweden’s education reforms effectively amount to a voucher system (without tuition top-ups, residence restrictions or entrance exams), in which public schools compete with private schools on an equal basis. More on the reformed Swedish school system here.

free schools

Friday, February 25th, 2011

Why won’t UK Conservatives, led by David Cameron, use public money to fund private, for-profit schools?

The avowedly social democratic Swedes allowed this when they opened up their school system 20 years ago. Today almost three-quarters of their free schools are run on a for-profit basis. These companies succeed because they are entrepreneurial, and treat parents and pupils like valued customers. ….

Of course such free schools can fail, as can a local authority school. But the answer to this is regulation, not prohibition. All schools should get the same amount of funding per pupil, and must agree not to charge extra fees or select by ability. They should then be held to account for the content and quality of the education they provide. Free schools are run on licence, and licences can always be revoked.

To argue the case on its merits is to miss the point, however. The ban on profitmaking schools has little to do with good policy, and everything to do with politics.

Julian Astle, “Profitable lessons for Cameron’s schools revolution“, Financial Times, 24 February 2011.

The political reality, according to this columnist, is that Mr Cameron’s party “hates the idea”.

Julian Astle is director of CentreForum, a liberal think-tank based in Westminster, London.

Information on Sweden’s educational reform is available here.

China fact of the day

Wednesday, January 19th, 2011

The school system in mainland China is more market-oriented (allows more consumer choice) than the school system of the world’s largest capitalist economy.

[A]s compared with parents in the United States, Chinese parents have more choice of schools for their children. They are not subject to paying a real estate tax, to finance the usually only public school available to their children. The Chinese schools are financed partly by general tax revenue and partly by tuition. There are several public and private schools available to most urban families. The schools are not obliged to accept any student below the standard they set, and thus have different academic standards. Parents have a choice of primary and secondary schools; and schools, public and private, can choose their students.

Gregory C. Chow, China’s Economic Transformation (second edition, Blackwell Publishing, 2007), p. 402.

This might explain. in part, Shanghai’s outstanding performance in PISA, the OECD’s global test of 15-year-old students’ skills in reading, maths and science. In Chinese universities, in contrast, standards are low; as a result, large numbers of graduates are unemployed or underemployed.

Gregory Chow (1929-) is professor emeritus of political economy and econometrics at Princeton University. He is best known for invention of the “Chow test”, a statistical test for structural change in a regression.

Mr Chow grew up in Guangdong province in South China, and moved with his family to Hong Kong in 1937, when the Japanese invaded China. In 1942 he and his family moved to Macao after the Japanese occupation of Hong Kong. The Chow family returned to Guangdong province in 1945 and Gregory entered Lingnan University, transferring after one year to Cornell University. He went on to graduate school at the University of Chicago, where he completed an economics PhD in 1955. He taught first at MIT, then briefly at Cornell before moving to Princeton in 1970.

China’s underemployed university graduates

Sunday, December 12th, 2010

Today’s New York Times has an article describing the glut of university graduates seeking work in China. The author focuses on supply and demand, but much of the problem is undoubtedly a result of  the poor quality and irrelevance (for employment) of much university education in China.

In 1998, when Jiang Zemin, then the president, announced plans to bolster higher education, Chinese universities and colleges produced 830,000 graduates a year. Last May, that number was more than six million and rising. ….

In a kind of cruel reversal, China’s old migrant class — uneducated villagers who flocked to factory towns to make goods for export — are now in high demand, with spot labor shortages and tighter government oversight driving up blue-collar wages.

But the supply of those trained in accounting, finance and computer programming now seems limitless, and their value has plunged. ….

Chinese sociologists have come up with a new term for educated young people who move in search of work …: the ant tribe. It is a reference to their immense numbers — at least 100,000 in Beijing alone — and to the fact that they often settle into crowded neighborhoods, toiling for wages that would give even low-paid factory workers pause.

“Like ants, they gather in colonies, sometimes underground in basements, and work long and hard,” said Zhou Xiaozheng, a sociology professor at Renmin University in Beijing. ….

Given the glut of underemployed graduates, Mr. Peng [Xizhe, dean of Social Development and Public Policy at Fudan University in Shanghai,] suggested that young people either shift to more practical vocations like nursing and teaching or recalibrated their expectations. “It’s O.K. if they want to try a few years seeking their fortune, but if they stay too long in places like Beijing or Shanghai, they will find trouble for themselves and trouble for society,” he said.

Andrew Jacobs, “China’s Army of Graduates Struggles for Jobs”, New York Times, 12 December 2010.

more on China’s PISA results

Thursday, December 9th, 2010

Shanghai, which participated for the first time in the OECD’s global survey of 15-year-old students, astounded everyone with its results. Shanghai students scored first in all three PISA subjects – reading, maths and science – and in each was ahead of the pack by a large margin. Shanghai scores for reading averaged 556, compared to 539 for second-placed Korea. In maths and science Shanghai students did even better, with average scores of 600 and 575, well above second-placed Singapore (562) in maths and Finland (554) in science.

Journalist Henry Mance examines the reasons for Shanghai’s success.

So why did Shanghai do so well? The OECD points to Chinese school reforms: it was impressed by the initiative shown by teachers, who are now better paid, better trained and keen to mould their own curricula. Poor teachers are speedily replaced. China has also expanded school access, and moved away from learning by rote. ….

The OECD also points to cultural factors – widespread expectations of high performance, and pressure from parents. ….

If schools did well just because of hard work, then countries with similar cultures should see similar results. But Finland beats Sweden by a distance, Shanghai beats Taiwan, and Hong Kong beats Macau. Equally, if the schools themselves were uniquely important, then why do young Chinese immigrants do so well in UK classrooms? Culture and system almost certainly reinforce each other: with a merit-based system stimulating hard work, and vice-versa. ….

[A]ccording to medium-term data from Canada, students who do well on the Pisa survey are very likely to do well in higher education and the job market.

However, that correlation would not necessarily be repeated in China. For one thing, parental pressure eases once students get to universities. For another, Chinese universities have been accused of corruption in how they award degrees – which may undermine the incentives for hard work.

Henry Mance, “Why are Chinese schoolkids so good?”, beyond-brics, 7 December 2010.

There is much more at the link, which is not gated. Neither registration nor subscription is necessary to access the beyond-brics blog.

Henry Mance is a Marjorie Deane fellow at the Financial Times. He has written for BBC News, The Guardian newspaper and World Politics Review. He is now based in London, after three years in South America.

China shines in PISA exams

Wednesday, December 8th, 2010

The Organization for Economic Cooperation and Development (OECD) yesterday released results for its 2009 PISA (Programme for International Student Assessment) tests. PISA assesses reading, maths and scientific skills of representative 15-year-olds in about 65 countries (30 OECD member countries and 35 partner countries) every three years.

Shanghai and Hong Kong posted exceptionally strong performances, ranking 1st and 4th, respectively. Here is a list of the top ten performers in PISA 2009:

1.  Shanghai
2.  Korea*
3.  Finland*
4.  Hong Kong
5.  Singapore
6.  Canada*
7.  New Zealand*
8.  Japan*
9.  Australia*
10. Belgium*

(*) indicates the country is a member of OECD.

Shanghai and Hong Kong are not representative of China but Andreas Schleicher, special adviser on education to the OECD, said the country should not be underestimated. “They have agile, mobile schools and a lot of parental pressure,” he said.

Citing further, as-yet unpublished OECD research, Mr Schleicher said: “We have actually done Pisa in 12 of the provinces in China. Even in some of the very poor areas you get performance close to the OECD average.” ….

The US came in at 14th [of 30 OECD countries], but its localised school system is extremely variable. Schools in the north-east US are the equal of those in seventh-placed Netherlands. In the mid-west, they are equivalent to 12th-placed Poland, In the west, they are as good as those in Italy (placed 23rd), but schools in the south are only as effective as those in Greece (placed 25th).

Chris Cook, “Shanghai tops global state school rankings”, Financial Times, 8 December 2010. (requires registration/subscription)

An ungated report is available at digitaljournal.com.

Full results are posted at oecd.org.

China’s failing educational system

Friday, October 22nd, 2010

Hong Kong-based journalist Josh Noble has posted interesting excerpts from a note by Nicholas Smith, who is an equity analyst at the NYC brokerage firm MF Global. Nicholas Smith works in MF Global’s Tokyo office. Mr Noble provides no links to the note, so we are left with only bits of what Smith wrote. These bits are tiny, but provocative.

Today a note by MF Global’s Nicholas Smith – provocatively entitled ‘The Sweatshop that Roared’ – … [warned] that 1960s Japan was in much better shape than today’s China, principally because of one thing: education.

While policymakers in the western world fret about the many millions of graduates being churned out of China’s universities every year, Smith points not to the number, but to the quality of those graduates. Take engineers:

The educational system produces far too few properly trained engineers. McKinsey did a study of China’s looming talent shortage in a 2005 report, interviewing 83 HR professionals involved in hiring in low-wage countries: it concluded that only 10% of China’s graduate job candidates are suitable for employment by multinationals. Small wonder foreign companies in China complain of a talent shortage.

For those graduates that do find a job, there’s another problem.

Pay for recent graduates is below that for unskilled migrant workers and over a million remained unemployed – a sign the education system is tragically failing the parents that saved for it, and the economy generally.”

Japan, says Smith, laid the foundations of its high-tech industry with education reforms dating back to the late 19th centry – which helped boost school attendance and literacy rates. China, by comparison, is still suffering from the legacy of the Cultural Revolution:

The effects are felt not only in the thinness of the cream in industry senior management, but also in the quality of leadership and mentoring in universities. A recent study by the Chinese government revealed that a third of the 6,000 scientists at 6 of the country’s top institutions admitted to plagiarism or the outright fabrication of research data.

Josh Noble, “Education: the thorn in China’s upside”, Beyond BRICs, 20 October 2010.

Beyond BRICs is an ungated FT blog.

‘publish or perish’ in China

Thursday, October 7th, 2010

[A] lack of integrity among researchers is hindering China’s potential and harming collaboration between Chinese scholars and their international counterparts, scholars in China and abroad say.

“If we don’t change our ways, we will be excluded from the global academic community,” said Zhang Ming, a professor of International Relations at Renmin University in Beijing. “We need to focus on seeking truth, not serving the agenda of some bureaucrat or satisfying the desire for personal profit.”

Pressure on scholars by administrators of state-run universities to earn journal citations — a measure of innovation — has produced a deluge of plagiarized or fabricated research. ….

Fang Shimin, a muckraking writer who has become a well-known advocate for academic integrity, said the problem started with the state-run university system, where politically appointed bureaucrats have little expertise in the fields they oversee. Because competition for grants, housing perks and career advancement is so intense, officials base their decisions on the number of papers published.

“Even fake papers count because nobody actually reads them,” said Mr. Fang ….

Andrew Jacobs, “Rampant Fraud Threat to China’s Brisk Ascent”, New York Times, 7 October 2010.