Brewer / McEwan Economics of Education

1. Auflage 2010
ISBN: 978-0-08-096531-4
Verlag: Elsevier Science & Techn.
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 382 Seiten, Web PDF

A collection of short, stand-alone chapters divided into five sections including overview of the field; private and social returns to human capital investments; production, costs and ?nancing of education; teachers and teacher labor markets; and education markets, choice and incentives. The collection provides international perspectives that describe the origins of these subjects, their major issues and proponents, their landmark studies, and opportunities for future research. The 70 contributors are each well-regarded economists whose research has advanced the topic on which they write, and this book fulfills an undersupplied niche for a text in the economics of education. The chapters come from the acclaimed International Encyclopedia of Education, 3e (2010), edited by Eva Baker, Barry McGaw, and Penelope Peterson. The Encyclopedia contains over 1,350 articles in 24 sections that stretch from educational philosophies and technologies to measurement, leadership, and national systems of education. - This single volume textbook presents a cohesive view of this increasingly important area ofeconomics - Superb contributions from well-regarded economist convey unique and useful perspectives - Chapters contain an extensive bibliography and further readings to enable interestedresearchers to extend their knowledge into each speci?c topic

Autoren/Hrsg.

Brewer, Dominic J.

McEwan, Patrick J.

Inhaltsverzeichnis

1;Front Cover;1
2;Economics of Education;4
3;Copyright Page;5
4;Preface;6
5;Contributors;8
6;Contents;12
7;I. OVERVIEW;14
7.1;Theoretical Concepts in the Economics of Education;16
7.1.1;Economics Defined;16
7.1.2;Human Capital;17
7.1.3;Markets and Market Failure;17
7.1.4;Education Production;19
7.1.5;Concluding Thoughts;20
7.1.6;Bibliography;20
7.1.7;Further Reading;20
7.2;Empirical Research Methods in the Economics of Education;22
7.2.1;Common Research Terms;22
7.2.2;Methods for Answering Causal Questions;22
7.2.2.1;Statistical Controls for Observed Variables;22
7.2.2.1.1;Regression analysis;23
7.2.2.1.2;Propensity score matching;23
7.2.2.2;Randomized Assignment;24
7.2.2.3;Discontinuity Assignment;24
7.2.2.4;Instrumental Variables;25
7.2.2.5;Difference-in-Differences;25
7.2.2.6;Combining Methods to Improve Causal Inference;26
7.2.3;Conclusions;26
7.2.4;Bibliography;27
7.2.5;Further Reading;27
7.3;Data in the Economics of Education;28
7.3.1;Overview;28
7.3.2;National Data Systems;28
7.3.2.1;CCD and SASS Databases;28
7.3.2.2;NAEP Assessment Data;29
7.3.2.3;National Longitudinal Studies: NLS-72, HS and B, NELS: 88, and ELS: 2002;29
7.3.2.4;Crime and Safety Surveys;30
7.3.2.5;Accessibility;30
7.3.3;State and School District Databases;31
7.3.3.1;The National Center for Analysis of Longitudinal Data in Education Research;32
7.3.3.1.1;Florida;32
7.3.3.1.2;Texas;32
7.3.3.1.3;New York;32
7.3.3.1.4;North Carolina;33
7.3.3.1.5;Missouri;33
7.3.3.1.6;Washington;33
7.3.3.2;Other State and District Administrative Databases;33
7.3.3.2.1;Chicago;33
7.3.3.2.2;Arizona;33
7.3.3.2.3;California;33
7.3.3.2.4;Other states;34
7.3.4;International Data Systems;34
7.3.5;Conclusions;34
7.3.6;Bibliography;34
7.3.7;Further Reading;35
8;II. THE PRIVATE AND SOCIAL RETURNS TO HUMAN CAPITAL INVESTMENTS;38
8.1;Human Capital;40
8.1.1;Private Returns to Education;40
8.1.1.1;Theoretical Issues and Modeling;40
8.1.1.2;Empirical Estimates and Methodology;41
8.1.1.3;Topics in Empirical Estimation;42
8.1.1.3.1;Primary and secondary education;42
8.1.1.3.2;Post-secondary education;42
8.1.1.3.3;On-the-job training and work experience;43
8.1.1.4;Nonmonetary Returns to Education;43
8.1.2;Social Returns to Education;43
8.1.3;Conclusion;44
8.1.4;Bibliography;44
8.1.5;Further Reading;45
8.2;Signaling in the Labor Market;46
8.2.1;Empirical Evidence;47
8.2.2;Conclusion;49
8.2.3;Bibliography;49
8.2.4;Further Reading;49
8.3;Returns to Education in Developed Countries;50
8.3.1;Introduction;50
8.3.2;Estimating Returns to Education via Schooling Equations;50
8.3.2.1;Basic Schooling Equation;51
8.3.2.2;Hourly Wages versus Measures That Include Hours of Work;51
8.3.2.3;Measurement Error in Schooling;51
8.3.2.4;Ability Bias, Omitted Variables, and Selection Bias;52
8.3.2.4.1;Include proxy measures of ability;52
8.3.2.4.2;Twin studies;52
8.3.2.4.3;Natural experiments based mainly on features of the education system;52
8.3.2.5;Heterogeneous Returns;53
8.3.2.6;Annual Returns, Signaling, and Sheepskin Effects;54
8.3.3;Trends and Some International Evidence;54
8.3.4;Summary;54
8.3.5;Bibliography;55
8.3.6;Further Reading;56
8.4;Returns to Education in Developing Countries;57
8.4.1;Earnings Differentials by Education;57
8.4.2;Returns to Education;57
8.4.2.1;Causality;61
8.4.2.2;Cognitive Ability;62
8.4.3;Conclusions and Policy Considerations;62
8.4.4;Bibliography;63
8.4.5;Further Reading;64
8.5;School Quality and Earnings;65
8.5.1;Estimation Methods Typically Used;65
8.5.2;Methodological Weaknesses;66
8.5.3;Summary of Findings;66
8.5.3.1;Testing for a Significant Relation between School Resources and Earnings;66
8.5.3.1.1;Results for US women and workers in the United Kingdom;67
8.5.3.2;Estimating the Size of the Relation Between School Resources and Earnings;68
8.5.4;Explanations for Variations in Results;68
8.5.4.1;Age Dependence;70
8.5.4.2;Structural Changes?;70
8.5.5;Specific Problems Potentially Afflicting State-Level and School-Level Studies;70
8.5.6;Issues That Require Further Research;71
8.5.7;Bibliography;71
8.5.8;Further Reading;72
8.5.9;Relevant Websites;72
8.6;Education and Economic Growth;73
8.6.1;Initial Evidence on the Quality of Education and Economic Growth;74
8.6.2;Recent Evidence on the Importance of Cognitive Skills for Economic Growth;76
8.6.3;The Interaction of Educational Quality with Economic Institutions;78
8.6.4;Simulating the Impact of Educational Reform on Economic Growth;78
8.6.5;Summary;79
8.6.6;Bibliography;80
8.6.7;Further Reading;80
8.6.8;Relevant Website;80
8.7;The External Benefits of Education;81
8.7.1;Distinguishing Private Market, Private Nonmarket, and Social Benefits;81
8.7.1.1;The Market Benefits of Education;81
8.7.1.2;The Private Nonmarket Benefits of Education;81
8.7.1.3;The External Social Benefits of Education;82
8.7.1.4;The Indirect Effects from Education;83
8.7.1.5;Why Are Indirect Effects Externalities?;83
8.7.2;The Evidence: Identifying and Valuing the External Social Benefits;83
8.7.2.1;The Value of the Direct Nonmarket Public Benefits of Education;85
8.7.2.2;Evidence Concerning Specific External Social Benefits;86
8.7.2.2.1;Democratization;86
8.7.2.2.2;Human rights;87
8.7.2.2.3;Political stability;87
8.7.2.2.4;Life expectancy;87
8.7.2.2.5;Reduced inequality and lower poverty;88
8.7.2.2.6;Lower crime rates;88
8.7.2.2.7;Lower public health, welfare, and prison costs;88
8.7.2.2.8;Increased tax receipts;88
8.7.2.2.9;Environmental benefits;88
8.7.2.2.10;Happiness and social capital;89
8.7.2.2.11;Dissemination of technology;89
8.7.2.3;The Value of External Indirect Effects;89
8.7.3;The Total Value of Education's External Benefits;89
8.7.4;Studies of Aggregate Externalities;90
8.7.5;Implications;91
8.7.6;Bibliography;91
8.7.7;Further Reading;92
8.7.8;Relevant Website;92
8.8;Education and Health;93
8.8.1;Overview of Causal Relationships;93
8.8.1.1;Health, Education, and Poverty;94
8.8.1.2;Stress;94
8.8.1.3;Social Standing;96
8.8.1.4;Social Deprivation;96
8.8.1.5;Behavioral Risk Factors;97
8.8.1.6;Genetic Risk Factors;98
8.8.1.7;Health Insurance;99
8.8.1.8;Enhanced Cognitive Ability;100
8.8.2;Conclusions;100
8.8.3;Bibliography;100
8.8.4;Further Reading;101
8.8.5;Relevant Website;101
8.9;Education and Civic Engagement;102
8.9.1;Comparisons of Public and Private Schools;103
8.9.2;Summary and Future Directions;104
8.9.3;Bibliography;105
8.9.4;Further Reading;105
8.10;Education and Crime;106
8.10.1;Introduction;106
8.10.2;The Economics of Education and Crime;106
8.10.2.1;The Effects of Education on Subsequent Crime Among Adults;106
8.10.2.2;Contemporaneous Crime and Education Decisions Among Youth;107
8.10.3;Empirical Evidence on Crime and Education;107
8.10.3.1;The Effects of Education on Crime;107
8.10.3.2;The Effects of Arrest and Incarceration on Education;110
8.10.3.3;Education and Training in Prison;110
8.10.4;Conclusions;111
8.10.5;Bibliography;111
8.10.6;Further Reading;111
8.10.7;Relevant Website;111
8.11;Education and Inequality*;112
8.11.1;Introduction;112
8.11.2;Inequalities in Educational Outcomes;112
8.11.2.1;Inequalities by Social Background;112
8.11.2.2;Inequalities by Race, Ethnicity, and Immigrant Status;113
8.11.2.3;Inequalities by Gender;114
8.11.3;Education and Economic Outcomes;115
8.11.3.1;Causality;116
8.11.3.2;Wider Benefits of Education;118
8.11.3.3;Changes over Time;118
8.11.4;Conclusions;120
8.11.5;Bibliography;120
8.11.6;Further Reading;121
8.11.7;Relevant Website;121
8.12;Race Earnings Differentials;122
8.12.1;Race and Ethnic Earnings Differences in the United States;123
8.12.2;A Model for Explaining Earnings Differences;124
8.12.3;Explaining Earnings Differences with Cross-Section Data;125
8.12.4;Earnings Differences for Minority Women;126
8.12.5;Do Ability/Educational Quality Differences Explain Race/Ethnic Earnings Differences?;127
8.12.6;What Are the Sources of the Black/White Test-Score Gap?;128
8.12.7;Explaining Changes in Earnings Differences over Time;129
8.12.8;Comparing Results for Brazil and Israel;130
8.12.9;Bibliography;131
8.13;The Economics of High School Dropouts;132
8.13.1;Who Drops Out of High School?;132
8.13.2;What Are the Consequences?;133
8.13.3;Why Do Students Drop Out?;133
8.13.3.1;Individual Factors;134
8.13.3.2;Institutional Factors;134
8.13.3.2.1;Families;134
8.13.3.2.2;Schools;134
8.13.3.2.3;Community and peers;135
8.13.4;What Can Be Done?;135
8.13.4.1;Programmatic Approaches;136
8.13.4.2;Systemic Solutions;136
8.13.5;Conclusions;136
8.13.6;Bibliography;137
8.13.7;Further Reading;137
8.13.8;Relevant Website;137
9;III. THE PRODUCTION, COSTS AND FINANCING OF EDUCATION;138
9.1;Education Production Functions: Concepts;140
9.1.1;Introduction;140
9.1.2;Production Function Models and Assumptions;140
9.1.2.1;Basic Assumptions;141
9.1.2.2;Additional Common Assumptions;141
9.1.3;EPFs and Accountability;143
9.1.4;Evidence on the Assumptions of the EPF;143
9.1.5;Bibliography;144
9.1.6;Relevant Website;144
9.2;Education Production Functions: Evidence from Developed Countries;145
9.2.1;Overview;145
9.2.2;Measured School Inputs;146
9.2.3;Study Quality;146
9.2.4;Benefits and Costs;147
9.2.5;Do Teachers and Schools Matter?;147
9.2.6;Some Conclusions and Implications;148
9.2.7;Bibliography;148
9.2.8;Further Reading;148
9.3;Education Production Functions: Evidence from Developing Countries;150
9.3.1;Introduction;150
9.3.2;The Education Production Function;150
9.3.3;Estimation of Production Functions;151
9.3.3.1;Omitted Variable Bias;152
9.3.3.2;Selection and Attrition Bias;152
9.3.3.3;Endogenous Program Placement Bias;152
9.3.3.4;Measurement Error Bias;152
9.3.3.5;Methods to Reduce or Remove Bias;153
9.3.4;Evidence from Developing Countries;153
9.3.4.1;Education in Developing Countries;153
9.3.4.2;Demand Interventions;155
9.3.4.3;Supply Policies;158
9.3.5;Conclusions and Suggestions for Future Research;159
9.3.6;Acknowledgment;159
9.3.7;Bibliography;159
9.3.8;Further Reading;160
9.4;Family Environment in the Production of Schooling;161
9.4.1;Health Influences on Achievement;163
9.4.2;Housing and Student Mobility;165
9.4.3;Income and Wealth Differences that Influence Achievement;165
9.4.4;Conclusion;166
9.4.5;Bibliography;166
9.4.6;Relevant Website;168
9.5;Parental Socioeconomic Status, Child Health, and Human Capital;169
9.5.1;Introduction;169
9.5.2;Does Parental Socioeconomic Status Affect Child Health?;169
9.5.2.1;External Benefits of Parental SES;169
9.5.2.2;Evidence;170
9.5.2.2.1;Correlation;170
9.5.2.2.2;Causation;170
9.5.3;Does Child Health Affect Future Outcomes?;171
9.5.3.1;Possible Channels;171
9.5.3.2;Evidence;171
9.5.3.2.1;Conditions in utero;172
9.5.3.2.2;Birth weight;172
9.5.3.2.3;Nutrition;172
9.5.3.2.4;Mental health;173
9.5.3.2.5;Asthma;173
9.5.3.2.6;Acute illnesses;173
9.5.3.2.7;Environmental toxins;173
9.5.4;Can Health Account for Gaps in Children's Educational Outcomes?;174
9.5.5;Bibliography;174
9.5.6;Further Reading;175
9.5.7;Relevant Website;175
9.6;Neighborhoods and Peers in the Production of Schooling;176
9.6.1;Evidence on Neighborhoods;177
9.6.2;Evidence on Schoolmates and Classmates;180
9.6.3;Discussion;181
9.6.4;Bibliography;182
9.6.5;Further Reading;182
9.7;Desegregation, Academic Achievement, and Earnings;183
9.7.1;Supreme Court Decisions and Desegregation Methods;183
9.7.2;Trends in School Enrolment Patterns: 1968-2000;183
9.7.3;Desegregation and White Enrolment Decline;185
9.7.4;Desegregation Program Effects on Academic and Economic Outcomes;187
9.7.4.1;Methodological Issues;187
9.7.4.2;Summary of Results;188
9.7.5;Bibliography;189
9.8;Teacher Quality in Education Production;191
9.8.1;What Is Teacher Quality?;191
9.8.2;Teacher Experience;192
9.8.3;Teacher Certification;192
9.8.4;Degree Level and Subject-Matter Preparation;193
9.8.5;Teacher Ability;193
9.8.6;Conclusion;194
9.8.7;Bibliography;194
9.8.8;Further Reading;195
9.9;The Economics of Class Size;196
9.9.1;Why Class Size Might Matter;196
9.9.2;Empirical Approaches to Studying the Impact of Class Size;196
9.9.3;Nonexperimental Research;197
9.9.4;Experimental Research;197
9.9.4.1;Checks for Randomization;198
9.9.4.2;Achievement Results;199
9.9.4.3;Additional Caveats;200
9.9.5;Quasi-Experimental Research;201
9.9.6;Policy-Induced Variation;202
9.9.7;Discussion;202
9.9.8;Bibliography;202
9.9.9;Further Reading;203
9.10;The Economics of Early Childhood Interventions;204
9.11;Cost-Benefit Analysis and Cost-Effectiveness Analysis;210
9.11.1;Economic Evaluation of Education;210
9.11.2;Methodology;210
9.11.2.1;Measuring Costs;211
9.11.2.2;Benefits and Effects;212
9.11.2.3;Examples of Applications;212
9.11.2.3.1;Cost-benefit analysis;212
9.11.2.3.1.1;Further application of CBA;212
9.11.2.3.2;Cost-effectiveness analysis;213
9.11.2.3.2.1;Further application of CEA;213
9.11.3;Bibliography;213
9.11.4;Further Reading;214
9.12;Economic Approaches to Adequacy;215
9.12.1;Measuring the Costs of Adequacy;215
9.12.2;Cost-Function Estimation;217
9.12.2.1;Variables and Functional Form;217
9.12.2.2;Efficiency;217
9.12.2.3;Estimation Methods;218
9.12.2.4;Data Requirements;218
9.12.3;Cost-Function Results;218
9.12.4;Bibliography;219
9.12.5;Further Reading;220
9.13;Economic Approaches to School Efficiency;221
9.13.1;Efficiency in an Education Context;221
9.13.2;Econometric Approaches;221
9.13.2.1;Data Envelopment Analysis;221
9.13.2.2;Stochastic Frontier Analysis;222
9.13.2.3;Corrected OLS;222
9.13.3;Specifications and Measurement;223
9.13.3.1;School Outputs;223
9.13.3.2;School Inputs;223
9.13.3.3;Environmental Factors;224
9.13.4;Findings Regarding School Efficiency;224
9.13.5;The Determinants of School Inefficiency;225
9.13.6;Conclusions;225
9.13.7;Bibliography;226
9.13.8;Further Reading;226
9.14;School Finance: An Overview;227
9.14.1;Introduction;227
9.14.2;School Finance in Context;227
9.14.3;Raising Revenue: Multiple and Evolving Roles;228
9.14.4;Distributing Resources: Multiple and Competing Goals;229
9.14.4.1;Mechanisms for Distributing Revenue across School Districts;229
9.14.4.2;Equity and Adequacy;230
9.14.4.3;Efficiency;231
9.14.5;Utilization of Resources: Current Policy Issues for School Finance;231
9.14.5.1;Teacher Compensation;231
9.14.5.2;Special Education;231
9.14.5.3;Expanding the Scope of Education;232
9.14.6;Bibliography;232
9.14.7;Further Reading;233
9.15;School Finance Reform;234
9.15.1;Introduction;234
9.15.2;Effects of School Finance Reforms on Spending;234
9.15.2.1;Impact of Reforms on the Distribution and Level of Spending;234
9.15.2.2;How Are Additional Dollars Spent?;235
9.15.3;Impact of School Finance Reform on Student Performance;235
9.15.4;Other Effects of School Finance Reforms;236
9.15.4.1;Spending on Other Public Services after Finance Reforms;236
9.15.4.2;Finance Reforms and Community Composition;236
9.15.4.3;Housing Prices and Finance Reforms;237
9.15.4.4;Do Finance Reforms Lead to Shifts of Enrollment to Private Schools?;237
9.15.4.5;Finance Reforms and Private Contributions to Public Schools;237
9.15.5;Summary;238
9.15.6;Bibliography;238
9.15.7;Further Reading;238
9.16;The Economics of Tuition and Fees in American Higher Education;240
9.16.1;Introduction;240
9.16.2;Tuition Keeps Rising in Private Higher Education;241
9.16.3;Tuition Keeps Rising at Public Institutions;243
9.16.4;Graduate and Professional Program Tuition and Fees;243
9.16.5;Concluding Remarks;244
9.16.6;Bibliography;244
9.16.7;Further Reading;244
10;IV. TEACHERS AND TEACHER LABOR MARKETS;246
10.1;Teacher Labor Markets: An Overview;248
10.1.1;Teacher Labor Markets;249
10.1.2;Methodological Issues;251
10.1.3;Looking Ahead;253
10.1.4;Bibliography;253
10.1.5;Further Reading;255
10.1.6;Relevant Website;255
10.2;Teachers in Developing Countries;256
10.2.1;Teacher Labor Markets in Developing Countries: Stylized Facts;256
10.2.1.1;Teacher Salary Levels: Mixed Evidence on Adequacy;256
10.2.1.2;Teacher Salary Characteristics: High Rigidity and Fiscal Cost;257
10.2.1.3;Poor Working Conditions;257
10.2.1.4;Teacher Entry and Assignment: Challenges for Quality and Equity;257
10.2.1.5;Inadequate Teacher Management;258
10.2.2;Teacher Policies and Their Effects;259
10.2.2.1;Teacher Pay;259
10.2.2.2;School-Based Management;260
10.2.2.3;Alternatives to Hiring Regular Teachers;261
10.2.2.4;Teacher Training;261
10.2.3;Some Lessons from Research on Teacher Policy in Developing Countries;261
10.2.4;Bibliography;262
10.2.5;Further Reading;263
10.2.6;Relevant Website;263
10.3;Teacher Supply;264
10.3.1;The Labor Market for Teachers;264
10.3.2;The Demand for Teachers;265
10.3.3;The Supply of Teachers;267
10.3.4;Teachers' Pay;271
10.3.5;Summary;271
10.3.6;Bibliography;272
10.3.7;Further Reading;272
10.4;Economic Approaches to Teacher Recruitment and Retention;273
10.4.1;The Supply of Teachers;273
10.4.1.1;Wages;273
10.4.1.2;Working Conditions;273
10.4.1.3;Psychic Benefits and Costs;274
10.4.1.4;School Location;274
10.4.1.5;Barriers to Entry;275
10.4.2;The Demand for Teachers;275
10.4.2.1;Student Enrolment and Teacher Retirement;275
10.4.2.2;Reduction in Student-to-Teacher Ratios;275
10.4.2.3;Hiring Processes;275
10.4.2.4;Institutional Constraints;276
10.4.3;Recruitment and Retention Policies to Date;276
10.4.3.1;Partnerships Between Districts and Local Colleges;276
10.4.3.2;Monetary Incentives;276
10.4.3.3;Changes in Entry Requirements;277
10.4.3.4;Teacher Induction and Mentoring;277
10.4.3.5;Performance-Based Pay;277
10.4.3.6;Career Differentiation Through Ladders;278
10.4.3.7;Improving Hiring Practices;278
10.4.3.8;Reform of Due Process;278
10.4.4;Conclusion;279
10.4.5;Bibliography;279
10.4.6;Further Reading;280
10.5;Compensating Differentials in Teacher Labor Markets;281
10.5.1;Background;281
10.5.2;Early Efforts;281
10.5.3;Purchasing Power of the Educational Dollar and Hedonic Wage Model;282
10.5.4;Empirical Estimates of Compensating Differentials across the US;283
10.5.5;Correlations over Time;283
10.5.6;Analysis of Differences between Public and Private Schools;283
10.5.7;Problems with the Hedonic Wage Model;284
10.5.7.1;Regional Factors and the Comparable Wage Index;284
10.5.7.2;Measuring Teacher Quality;285
10.5.7.3;Interpretation of Cost Factors;285
10.5.7.4;Teacher Quality and Fixed-Effects Models;285
10.5.7.5;Flexible Wages and the Nature of the Labor Market;285
10.5.7.6;Location as a Factor;286
10.5.8;Concluding Remarks;286
10.5.9;Bibliography;287
10.5.10;Further Reading;287
10.5.11;Relevant Website;288
10.6;Teacher Incentives;289
10.6.1;Teacher Incentives;289
10.6.2;Background on Incentive Programs;289
10.6.3;Advantages of Incentive Programs;290
10.6.3.1;Individual Incentives;290
10.6.3.1.1;Efficiency and productivity;290
10.6.3.1.2;Recruitment and retention of qualified teachers;291
10.6.3.2;Group Incentives;291
10.6.3.2.1;Efficiency and productivity;291
10.6.3.3;Summary of Key Findings;292
10.6.4;Disadvantages and Criticisms;292
10.6.4.1;Adverse and Unintended Consequences of Teacher Incentive Programs;294
10.6.5;Conclusions;294
10.6.6;Bibliography;295
10.6.7;Further Reading;296
10.7;The Economics of Teachers Unions in the United States;297
10.7.1;Introduction;297
10.7.2;A Brief History of Teachers' Unions in the United States;297
10.7.3;An Overview of Laws Regulating Teachers' Unions in the United States;298
10.7.4;Theoretical Ways in Which Teachers' Unions May Enhance or Detract from Education;298
10.7.4.1;Ways in Which Unions May Positively Impact School Districts;298
10.7.4.1.1;Unions improve teacher quality by increasing teachers' well-being;298
10.7.4.1.2;Unions allow teachers to focus on teaching;299
10.7.4.1.3;Unions improve information flows;299
10.7.4.1.4;Unions increase efficiency of resource use;299
10.7.4.1.5;Unions stabilize school districts;299
10.7.4.1.6;Unions correct a market failure in the education marketplace;299
10.7.4.2;Ways in Which Unions May Negatively Impact School Districts;299
10.7.4.2.1;Unions decrease efficient allocation of resources;299
10.7.4.2.2;Unions disrupt incentives for teacher performance;299
10.7.4.2.3;Unions reduce communities' social welfare;299
10.7.4.2.4;Unions drive wedges between teachers and districts;299
10.7.4.2.5;Unions threaten democratic processes;300
10.7.5;The Impact of Unions on District Outcomes: Evidence from Empirical Literature;300
10.7.5.1;The Relationship between Teachers' Unions and Teachers' Pay;300
10.7.5.2;The Relationship between Teachers' Unions and Student-Teacher Ratios;300
10.7.5.3;The Relationship between Teachers' Unions and Other Working Conditions;300
10.7.5.4;The Relationship between Teachers' Unions and School District Spending;301
10.7.5.5;The Relationship between Teachers' Unions and Student Achievement;301
10.7.6;Summary;301
10.7.7;Bibliography;301
10.7.8;Further Reading;302
10.7.9;Relevant Website;302
10.8;Teacher Training and Preparation in the United States;303
10.8.1;Introduction;303
10.8.2;Current Licensing Methods;304
10.8.3;Research on Teacher Training and Licensing;304
10.8.4;Conclusion;307
10.8.5;Bibliography;307
10.8.6;Further Reading;308
10.8.7;Relevant Website;308
11;V. EDUCATION MARKETS, CHOICE AND INCENTIVES;310
11.1;The Economic Role of the State in Education;312
11.1.1;Constructing Education Systems;312
11.1.2;Economics and the State's Role;313
11.1.2.1;Is Education a Public Good?;313
11.1.2.2;Market Failure in the Market for Education;313
11.1.2.2.1;Externalities;313
11.1.2.2.2;Information asymmetry;314
11.1.2.2.3;Uncertainty and risk aversion;314
11.1.2.2.4;Economies of scale;315
11.1.2.3;Equity and Equal Opportunity;315
11.1.3;Critique of State Provision;315
11.1.3.1;Public Choice and Government Failure;315
11.1.3.1.1;Inefficiency in production;315
11.1.3.1.2;Inequity in opportunities and outcomes;316
11.1.3.1.3;Standardization and enforced mediocrity;316
11.1.3.1.4;Rent-seeking and corruption;316
11.1.4;A Role for the State?;316
11.1.5;Education and the Shrinking State;317
11.1.6;Bibliography;317
11.2;Educational Privatization;319
11.2.1;Privatization of Different School Types;319
11.2.2;Privatization of School Services;320
11.2.3;Financing Education and Privatization;320
11.2.4;Evaluating Educational Privatization;321
11.2.5;Evaluating Educational Privatization Approaches;322
11.2.6;Tools of Educational Privatization;323
11.2.7;Summary;323
11.2.8;Bibliography;323
11.3;Tiebout Sorting and Competition;324
11.3.1;Tiebout Sorting and the Rationing of School Inputs;325
11.3.2;Tiebout Competition to Enhance Productive Efficiency;327
11.3.3;A Partial Divorce between Competition and Tiebout;327
11.3.4;Conclusion;328
11.3.5;Bibliography;328
11.3.6;Further Reading;329
11.4;The Economics of Catholic Schools;330
11.4.1;Introduction;330
11.4.2;Overview;330
11.4.2.1;History and Enrolment;330
11.4.2.2;Teachers;330
11.4.2.3;Students;330
11.4.2.4;Location;331
11.4.2.5;Tuition and Costs;331
11.4.2.6;Market Served;331
11.4.2.7;School Practices;331
11.4.2.8;Vouchers;331
11.4.2.9;Catholic Schools in Other Countries;332
11.4.3;Demand;332
11.4.4;Effects;333
11.4.4.1;Academic Achievement and Educational Attainment;333
11.4.4.2;Bad Behavior;334
11.4.4.3;Civic Participation and Altruism;334
11.4.4.4;Economic Effects;334
11.4.4.5;Other Effects;334
11.4.4.6;The Effect of Catholic School Attendance in Other Countries;334
11.4.5;Conclusions;334
11.4.6;Bibliography;335
11.4.7;Further Reading;335
11.4.8;Relevant Website;335
11.5;Competition and Student Performance;336
11.5.1;Concepts and Empirical Background;336
11.5.2;Competition Associated with the Presence of Private Schools;338
11.5.3;Competition Among Public Schools;338
11.5.4;Lessons from Research Using Non-US Data;339
11.5.5;Summary;340
11.5.6;Bibliography;340
11.5.7;Further Reading;341
11.6;The Economics of Charter Schools;342
11.6.1;Introduction;342
11.6.2;Policy Questions;342
11.6.2.1;What Types of Students Do Charter Schools Serve?;343
11.6.2.2;Are Charter and Traditional Schools Receiving Comparable Funding?;343
11.6.2.3;How Do Charter Schools Affect the Performance of Charter Students?;344
11.6.2.4;Is Charter School Competition Improving the Performance of Traditional Public Schools?;345
11.6.3;Conclusions;346
11.6.4;Bibliography;347
11.6.5;Further Reading;348
11.6.6;Relevant Website;348
11.7;The Economics of Parental Choice;349
11.7.1;The Basic Economics of Parental Choice;349
11.7.2;Choice among Alternative Types of Schools;350
11.7.3;Empirical Evidence on What Parents Care about;350
11.7.3.1;School Demographics;350
11.7.3.2;Academic Performance;351
11.7.3.3;Location;352
11.7.3.4;School Atmosphere: Safety, Discipline, Values, Class Size, and Friends;352
11.7.3.5;Does Parental Choice Vary by Income and Ability of Parents? Or Is There Evidence of Sorting by Income and Ability?;353
11.7.4;The Role of Information;353
11.7.5;Conclusions;354
11.7.6;Bibliography;354
11.7.7;Further Reading;355
11.7.8;Relevant Website;355
11.8;The Efficacy of Educational Vouchers**;356
11.8.1;Introduction;356
11.8.2;Structure of Voucher Plans;356
11.8.3;Domestic Voucher Programs;357
11.8.3.1;Publicly Funded Programs;357
11.8.3.1.1;The Milwaukee voucher program;357
11.8.3.1.2;The Cleveland voucher program;357
11.8.3.1.3;Other publicly funded voucher programs;359
11.8.3.2;Domestic, Privately Funded Programs;359
11.8.4;International Voucher Programs;360
11.8.4.1;Colombia PACES Program;360
11.8.4.2;Chile;360
11.8.5;Summary and Conclusion;361
11.8.6;Bibliography;362
11.8.7;Further Reading;363
11.8.8;Relevant Website;363
11.9;The Economics of School Accountability;364
11.9.1;The Rationale for School-Based Accountability;364
11.9.2;Designing School Accountability Systems;365
11.9.3;The Evidence on Student Achievement;366
11.9.4;Evidence on Unintended Consequences;367
11.9.5;Bibliography;368
11.9.6;Further Reading;369
11.10;Student Incentives;370
11.10.1;Conceptual and Empirical Issues;370
11.10.2;Incentives to Increase Student Effort and Performance;370
11.10.2.1;Standards-Based Accountability;370
11.10.2.1.1;Evidence;371
11.10.2.2;Student Financial Incentives;372
11.10.2.2.1;Evidence;372
11.10.2.3;Teacher Financial Incentives;372
11.10.2.3.1;Evidence;373
11.10.3;Conclusion;373
11.10.4;Bibliography;373
11.10.5;Further Reading;374
12;Subject Index;376