TAILIEUCHUNG - Lecture Economics of social issues - Chapter 6: The economics of education: Crisis and reform

As with individuals and families, countries have resources at their disposal which can be devoted to a wide variety of endeavors. From the perspective either of individuals and families or of entire economies, resources to provide basic education are of paramount importance. Chapter 6 provides knowledge of economics of education. | Chapter 6 The Economics of Education: Crisis and Reform Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 6- The Crisis in K-12 Declining academic achievement Factors influencing international comparisons Curriculum Teacher preparation Length of school day and year Expenditures per pupil American Eighth Graders verses the World, 2007 Country Math Science United States 508 520 Singapore 593 567 Japan 570 554 England 513 542 Russian Federation 572 530 Australia 496 515 Sweden 491 511 Italy 480 495 Norway 469 487 Cyprus 465 452 International Comparisons of Educational Expenditures 6- Country Expenditures per Student ($) (2003) Expenditures as a Percentage of GDP (2003) United States $8,855 Norway 8,476 Italy 7,218 United Kingdom 7,090 Australia 6,894 Sweden 6,339 Japan 6,266 6- K-12 as a Purely Private Market Education (student-years) Tuition ($) D = MPB S = MPC = MSC E* E1 1 a b 12,000 5,000 6- Increased Demand for Education Education (student-years) Tuition ($) S E* E1 1 b 12,000 5,000 c E2 S1 D D1 b1 Click 1: D1, c, dashed line down to E2 Click 2: S1 and b1 6- Shortcomings of a Purely Private Market for K-12 Education (student-years) Tuition ($) D = MPB S = MPC = MSC E* E1 b a E2 c MSB1 MSB2 MSB0 5,000 Click 1: MSB0 Click 2: a, grid, E2 Click 3: MSB1 Click 4: MSB2 6- Tuition Subsidy Education (student-years) Tuition ($) D = MPB S = MPC = MSC E* E1 b a E2 MSB0 5,000 4,000 6- Segregation and Equal Opportunity Importance of a common experience Would a purely private market lead to segregation? Providing equal opportunity 6- Proposals for Reform in Current K-12 System School Choice and Vouchers Excessive centralization, bureaucracy, lack of effective parental input of public school system Vouchers and competition Charter Schools Analysis of existing voucher/choice programs Downsides to voucher/choice Cream-skimming Social segregation Are Private Schools More Efficient and Effective than Public? 6- Other Issues Class-size reductions Effect on learning Cost-effectiveness Additional School Resources Teacher pay New school construction

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