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EdWorkingPapers

Plamen Nikolov, Nusrat Jimi.

Numerous studies have considered the important role of cognition in estimating the returns to schooling. How cognitive abilities affect schooling may have important policy implications, especially in developing countries during periods of increasing educational attainment. Using two longitudinal labor surveys that collect direct proxy measures of cognitive skills, we study the importance of specific cognitive domains for the returns to schooling in two samples. We instrument for schooling levels and we find that each additional year of schooling leads to an increase in earnings by approximately 18-20 percent. The estimated effect sizes—based on the two-stage least squares estimates—are above the corresponding ordinary least squares estimates. Furthermore, we estimate and demonstrate the importance of specific cognitive domains in the classical Mincer equation. We find that executive functioning skills (i.e., memory and orientation) are important drivers of earnings in the rural sample, whereas higher-order cognitive skills (i.e., numeracy) are more important for determining earnings in the urban sample. Although numeracy is tested in both samples, it is only a statistically significant predictor of earnings in the urban sample. (JEL I21, F63, F66, N37)

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Alberto Guzman-Alvarez, Lindsay C. Page.

Verification is a federally mandated process that requires selected students to further attest that the information reported on their FAFSA is accurate and complete. In this brief, we estimate institutional costs of administrating the FAFSA verification mandate and consider variation in costs by institution type and sector. Using data from 2014, we estimate that compliance costs to institutions in that year totaled nearly $500 million with the burden falling disproportionately on public institutions and community colleges, in particular. Specifically, we estimate that 22% of an average community college’s financial aid office operating budget is devoted to verification procedures, compared to 15% at public four-year institutions. Our analysis is timely, given that rates of FAFSA verification have increased in recent years.

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Christian Buerger, Seung Hyeong Lee, John D. Singleton.

A recent literature provides new evidence that school resources are important for student outcomes. In this paper, we show that school finance reform-induced increases in student performance are driven by those states that had test-based accountability policies in place at the time. By incentivizing school improvement, accountability systems (such as the federal No Child Left Behind act) may raise the efficiency with which additional school funding gets spent. Our empirical approach leverages the timing of school finance reforms to compare funding impacts on student test scores between states that had accountability in place at the time of the reform with states that did not. The results indicate that finance reforms are three times more productive in low-income school districts when also accompanied by test-based accountability. These findings shed new light on the role of accountability incentives in education production and the mechanisms supporting the effectiveness of school resources.

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Jason A. Grissom, David S. Woo, Brendan Bartanen.

High rates of principal turnover nationally mean that school districts constantly are called on to recruit and select new principals. The importance of a school’s principal makes choosing candidates who will be effective paramount, yet we have little evidence linking information known to school districts at time of selection to principal’s future job performance. Using data from Tennessee, we test the degree to which observable information about novice principals from prior to entry, including qualifications, work history information, and effectiveness in prior roles, predicts practice ratings assigned to them in their initial years in the principalship. We find that educational attainment and years of experience in other jobs hold little predictive power. Performance ratings received as an assistant principal (AP) or teacher, however, do predict principal effectiveness. Moreover, APs who previously worked in schools with highly rated principals are more likely to be effective upon transitioning into the principalship.

 

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Brendan Bartanen, Laura K. Rogers, David S. Woo.

Assistant principals are important education personnel, both as essential members of school leadership teams and apprentice principals. However, empirical evidence on their career outcomes remains scarce. Using statewide administrative data from Tennessee and Missouri, we provide the first comprehensive analysis of AP mobility. While prior work focuses only on AP promotions into principal positions, we also account for APs who exit school leadership and transfer to a different school. We find yearly mobility rates of 25–28%, with 10% of APs leaving school leadership, 7.5% changing schools, and 7.5–10% becoming principals. We also document a strong relationship between AP mobility and principal turnover, where higher-performing APs are substantially more likely to replace their departing principal. Principal transitions also appear to increase the likelihood that APs exit school leadership and change schools, highlighting an additional cost of high rates of principal churn.

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Beth E. Schueler, Catherine Armstrong Asher, Katherine E. Larned, Sarah Mehrotra, Cynthia Pollard.

The public narrative surrounding efforts to improve low-performing K-12 schools in the U.S. has been notably gloomy. Observers argue that either nothing works or we don’t know what works. At the same time, the federal government is asking localities to implement evidence-based interventions. But what is known empirically about whether school improvement works, how long it takes, which policies are most effective, and which contexts respond best to intervention? We meta-analyze 141 estimates from 67 studies of turnaround policies implemented post-NCLB. On average, these policies have had a moderate positive effect on math but no effect on ELA achievement as measured by high-stakes exams. We find evidence of positive impacts on low-stakes exams in STEM and humanities subjects and no evidence of harm on non-test outcomes. Some elements of reform, namely extended learning time and teacher replacements, predict greater effects. Contexts serving majority-Latinx populations have seen the largest improvements.

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Michael Gilraine, Valentina Duque.

We examine the effect of air pollution from power production on students' cognitive outcomes by leveraging year-to-year production variation, wind patterns, and plant closures. We find that every one million megawatt hours of coal-fired power production decreases student performance in schools within ten kilometers by 0.02 standard deviations. Gas-fired plants exhibit no such relationship. Extrapolating our results nationwide indicates that the decline in coal use over the last decade raises test scores by 0.008 standard deviations and reduces the black-white test score gap by 0.006 standard deviations. The nationwide effect obscures substantial spatial variation: The respective numbers for the Midwest are 0.016 and 0.023.

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Sandra E. Black, Jeffrey T. Denning, Lisa J. Dettling, Sarena Goodman, Lesley J. Turner.

Growing reliance on student loans and repayment difficulties have raised concerns of a student debt crisis in the United States. However, little is known about the effects of student borrowing on human capital and long-run financial well-being. We use variation induced by recent expansions in federal loan limits, together with administrative schooling, earnings, and credit records, to identify the effects of increased student borrowing on credit-constrained students’ educational attainment, earnings, debt, and loan repayment. Increased student loan availability raises student debt and improves degree completion, later-life earnings, and student loan repayment while having no effect on homeownership or other types of debt.

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Robert M. Costrell, Josh B. McGee.

Our goal in this paper, presented at the 2020 Brookings Municipal Finance Conference, is to better understand teacher pension funding dynamics with a focus on sustainability and intergenerational equity.  The origin of this paper is our analysis of the funding policy recommended in a highly publicized paper first presented at the 2019 Brookings Municipal Finance Conference (Lenney, Lutz, and Sheiner, 2019a; 2019b).  That proposed policy aims to alleviate rising pension payments that crowd-out classroom expenditures and teacher salaries by abandoning the attempt to pay down pension debt.  While the problem of crowd-out is real, we show that, with uncertain investment returns, the recommended policy would carry significant risk of pension fund insolvency and a jump in contributions to the pay-go rate, which is much higher than current rates. We close by proposing a policy evaluation framework that better incorporates risk and the intertemporal tradeoffs between current contributions and likely future outcomes.  We illustrate throughout with data from the California Teachers Retirement System (CalSTRS).

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David D. Liebowitz.

Teacher evaluation policies seek to improve student outcomes by increasing the effort and skill levels of current and future teachers. Current policy and most prior research treats teacher evaluation as balancing two aims: accountability and skill development. Proper teacher evaluation design has been understood as successfully weighting the accountability and professional growth dimensions of policy and practice. I develop a model of teacher effectiveness that incorporates improvement from evaluation and detail conditions which determine the effectiveness of teacher evaluation for growth and accountability at improving student outcomes. Drawing on empirical evidence from the personnel economics, economics of education and measurement literatures, I simulate the long-term effects of a set of teacher evaluation policies. I find that those that treat evaluation for accountability and evaluation for growth as substitutes outperform policies that treat them as complements. I conclude that optimal teacher evaluation policies would impose accountability on teachers performing below a defined level and above which teachers would be subject to no accountability pressure but would receive intensive instructional supports.

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