developing human capital for economic growth emiliana vegas the world bank may 14, 2007

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Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

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Page 1: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

Developing Human Capital for Economic Growth

Emiliana VegasThe World Bank

May 14, 2007

Page 2: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

Contents

1. Introduction, Motivation and Background2. Why does student learning matter?3. Why focus on student learning in Latin America and the

Caribbean?4. Methodological approach5. How is student learning achieved?

a) Economic, social and political conditions b) Student-side factorsc) School-side factorsd) Institutional factors

6. Ensuring that all students learn7. Conclusions, Next Steps

Page 3: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

1. Introduction, Motivation and Background

Human capital is a necessary condition for economic growth

While in the past, much effort focused on expanding access, we now understand that human capital is much more than educational attainment

Skills acquisition and the capacity to continue learning throughout the lifecycle are needed to develop individuals and to foster the rise in productivity needed for economic growth

Page 4: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

Latin America & the Caribbean has achieved progress in developing human capital

Access to basic education is mostly universal Institutional capacity to assess student

learning has improved Important innovations and pilot programs Strengthened research capacity in education Stronger partnerships with the private sector

and donor community

Page 5: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

But important challenges remain for the development of the HC needed for sustained growth

Increase access in higher and early childhood education, and reduce gaps across groups

Improve completion rates in basic education Raise student learning outcomes Reduce gaps in student learning between Latin

America and the Caribbean and OECD, East Asia

Improve the relevance of education in a changing world

Page 6: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

Raising student learning

Is, arguably, the key challenge for the region in the 21st century

We have recently completed a study on this topic (Vegas and Petrow, forthcoming), Raising Student Learning in Latin America: The Challenge for the 21st Century

Page 7: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

2. Why does student learning matter?

Education was established as a human right in 1948 and is viewed as such in Jomtien and Dakar

Learning and cognitive skills:

Have greater returns in the labor market than years of education

Have important effects on economic growth and competitiveness

Also affect individuals’ health, fertility, political participation, and risky behaviors

Education quality can reduce (or perpetuate) income and social inequalities

Page 8: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

3. Why focus on student learning in Latin America and the

Caribbean? Educational performance indicators are exceedingly

low and exhibit high inequalities within some Latin American countries

Inequalities in learning outcomes within countries are often related to socioeconomic differences

Ethnic and racial inequalities also exist, especially in ethnically diverse countries

Few Latin American students in the region enjoy an education of high quality

Page 9: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

PISA 2003

Pisa 2003

0

100

200

300

400

500

600

PERU

BRAZIL

MEXIC

O

CHILE

ARGENTINA

URUGUAY

TURKEY

UNITED S

TATES

SPAIN

HUNGARY

IRELA

ND

AUSTRIA

HONG KONG

FRANCE

NEW Z

EALAND

AUSTRALIA

CANADA

JAPAN

KOREA

FINLA

ND

Mea

n

0

20

40

60

80

100

120

140

Stan

dard

Dev

iati

on

Mean reading S.D. reading

Page 10: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

PISA math scores by student background

Source: PISA 2003

0

100

200

300

400

500

600

1 2 3 4

Socio-economic quartile

Average PISA Score in Mathematics 2003

Mexico

Brazil

Uruguay

OECD

Page 11: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

Average achievement gap between indigenous and non-indigenous students

in rural schools in Guatemala

Source: McEwan 2006

-1.4

-1.2

-1

-0.8

-0.6

-0.4

-0.2

0

1997 1999 2000 2001

Ave

rag

e d

iffe

ren

ce,

by

stan

dar

d

dev

iati

on

, b

etw

een

in

dig

eno

us

and

n

on

-in

dig

eno

us

stu

den

ts

Third grade Spanish Third grade Math Sixth grade Spanish Sixth grade Math

Page 12: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

Percentage of students by reading level in PISA 2003

30%

28%

20%

17%

5%

1%

Chile

4,6%

1,1%

31,7%

Finland

14,6%

33,4%

14,7%

Source: PISA 2003

Page 13: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

4. Methodological approach Develop a conceptual approach for analyzing factors

and policies that affect student learning outcomes Identify gaps in knowledge and conduct new research

to fill those gaps Synthesize findings from new and existing research

on factors and policies that affect student learning outcomes in Latin America and the Caribbean and the rest of the world

Intended audience: education policy makers, researchers, opinion-makers, and Bank staff involved in education operations

Page 14: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

5. How is student learning achieved?

SchoolsEndowments and

Behaviors of

Teachers

Schools

Authorities

StudentsEndowments and

Behaviors of

Students

Parents

Families

Education Policy

Policy actions

Specific programs

Systemic reforms

The Education System

Its organization and institutionality

Learning

Page 15: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

(a). How do economic, political and social conditions affect student

learning? A country’s economic resources can determine potential

education investment that may affect achievement levels: Public investment in education in Latin American has

increased in recent years but is still below OECD norms

There is no obvious relationship between expenditure and standardized test achievement, but low-performing countries tend to be low-spending countries

How resources are invested in education matters more than how much

Political commitment to student learning outcomes impacts not only funding, but also policies

Social inequalities are reflected in learning. Countries with higher income inequality tend to have larger differences in test scores across students

Page 16: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

A positive relationship exists between earnings and education

inequality

Spain

Hungary

CanadaIreland

KoreaFinland

Hong Kong

Turkey Peru Mexico

Chile

AustraliaFrance

United States of AmericaAustria

New ZealandJapan

BrazilArgentina

Uruguay

80

85

90

95

100

105

110

115

120

125

20.0 25.0 30.0 35.0 40.0 45.0 50.0 55.0 60.0 65.0

GINI coefficient of income

PIS

A s

tan

da

rd d

ev

iati

on

Page 17: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

(b) Students’ endowments and behaviors affect their learning

¿What do students bring with them to school?

age

pre-primary schooling-

cognitive development

natural ability

time for homework/work

What kind of support do they receive in the home?

socioeconomic statuscosts

values

parents’ education

income

books in the home

Learning

time for homework

Page 18: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

What do students bring with them to school?

Previous research has found that most of the variation in learning outcomes is explained by student-side factors

A child’s age when entering primary school can affect her trajectory through the education system

The preparation a child receives before entering primary school has a strong effect on later learning

A child’s access to pre-primary schooling can also greatly help improve the quality of and reduce inequalities in primary and secondary education

A child’s health can also affect how well s/he learns

Page 19: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

Policies affecting children’s endowments and behaviors

¿What do students bring with them to school?

age

pre-primary schooling-

cognitive development

natural ability

time for homework/work

What kind of support do they receive in the home?

socioeconomic status

costs

values

parents’ education

income

books in the home

Learning

time for homework

Early Childhood Education

CCTs

Education Policy

Page 20: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

(c.) Schools’ endowments and behaviors also affect student learning

Learning

What are the characteristics of schools?

time students spend in the classroom

peer group and school climate

class size

materials and textbooks

infrastructure

How effective are teachers?

rotation and turnover

knowledge

pedagogy

time in the profession

professional calling

motivation

Page 21: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

How effective are teachers?

The characteristics and behaviors of school staff, especially teachers, have a huge impact on student learning

Evidence of the impact of teachers’ observable characteristics, such as years of education and experience, on student learning is scant and inconclusive

Page 22: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

Policies addressing teachers and teaching

Education Policy

Incentives

Assignment

Professional Development

How effective are teachers?

rotation and turnover

knowledge

pedagogy

time in the profession

professional calling

motivation

Learning

Page 23: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

How teachers are paid, both in absolute levels and relative to comparable workers, can affect teaching quality

There is also limited evidence that salary level can have a beneficial impact on student outcomes

Salary structure also affects teachers and the work teachers do

Recent evidence from Uruguay shows that the country’s system of teacher assignment may be contributing to inequality between schools

Teacher education and professional development can also act as an incentive to teachers, although evidence of their impact on student learning is scarce

Policies addressing teachers and teaching

Page 24: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

Teachers’ Salary Structures are Different than those of Non-teachers

Experience or education

Salary

Teachers

Other workers

Source: Vegas and Umansky (2005)

Page 25: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

Pay Incentives are in Place in Few Countries

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Chile Bolivia

Base pay/years ofserviceEducation

Difficult conditions

Administration

Individual incentives

Master teacher

SNED

Page 26: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

Some implications for teacher policy

Many teachers should have a real possibility of earning additional pay based on performance

Incentives should be targeted to classrooms that can benefit most from improved teaching

Performance-based pay bonuses should be large enough to merit the extra effort

Incentives should reward actual or sustained improvements in teaching and learning

Teacher assignment policies should ensure that all schools, and especially schools serving disadvantaged students, have effective teachers

Teacher education and professional development need to be improved, systematized and transformed to address new priorities

Page 27: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

What school characteristics affect student learning?

Research on the relationship between increased investment in school resources and improved student learning indicates a tenuous relationship at best

The time students spend in school can impact learning How time is used, in addition to how much, also

affects learning (Cerdán-Infantes and Vermeersch 2006) Evidence on the effects of class size and student-

teacher ratios is inconclusive Much of the difference in achievement between

indigenous and non-indigenous students can be explained by school-level factors (McEwan and Trowbridge 2006)

Page 28: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

Policies affecting school characteristics that contribute to

student learning

What are the characteristics of schools?

time spent in the classroom

peer group and school climate

class size

materials and textbooks

infrastructure

Education Policy

Compensatory Policies

FTS

Multigrade School Reform

Learning

Page 29: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

Policy implications

Students need adequate learning environments Children need adequate time and resources to learn

in schools Compensatory programs and extended school days

can improve student learning, reduce failure, repetition and dropout rates, and are especially effective for disadvantaged and indigenous students

How schools are chosen to take part in compensatory programs is important

Multigrade schools need to receive support to meet their special institutional needs, but reforms need to be properly implemented and evaluated

Page 30: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

(d.) Institutional factors affect how much students learn

Learning

How are school systems administered?

parental/community participation

management capacity

level of administration

private/public provision

school choice

Page 31: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

Policies affecting system organization and administration

The level of decision making matters Providing additional support to schools with little

institutional capacity can help offset disparities in a decentralized system, as can finance equalization reform

Devolving some responsibilities to schools, parents, and communities can contribute to student learning, but the design of school-based management programs affects their impact

The state plays an important role to ensure quality in a school choice system

Page 32: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

6. How can Latin American countries ensure that all students learn?

Students Teachers

School Director

s

Schools

Local Governmen

t

State/Provincial

Government

Regional Governme

nt

National Governme

nt

Performance Standards

               

Performance Evaluation

               

Performance Reporting

               

Impact evaluation of policies and programs

               

Requirements to operate

               

Ensuring adequate and equitable resources

               

Autonomy, support, and intervention

               

Accountability and consequences

               

Page 33: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

Four Instructional Visions along a School Autonomy – Central Government Control Continuum

Market System

Quality Contracts

Differentiated Instruction

Managed Instruction

Chile New Zealand

UKUS (MA, TX)FinlandSpain

N. Korea

Page 34: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

The role of Government differs in each vision

Limited State

Central Government:•Sets operating requirements•Provides informacion to market•Finances

Schools: •Define performance standards, instructional model, and assessments

Market: •Determines the quantity, quality and distribution of schools

Managed instruction

Central Government: •Sets operating requirements•Defines one instructional model for all schools•Sets performance assessment and reporting rules•Provides information to participants to ensure quality•Finances•Authorizes and revokes licenses•Conducts performance evaluation/assessments•Intervenes differentially in schools to ensure quality•Inspects schools and intervenes to ensure adhesion to the instructional model

Differentiated instruction

Schools: •Define instructional model

Central Government: •Sets operating requirements•Sets performance assessment and reporting rules•Provides information to market•Finances•Authorizes and revokes licenses•Conducts performance evaluation/assessments•Intervenes differentially in schools to ensure quality

Quality contracts

Central Government: •Sets operating requirements•Sets performance assessment and reporting rules•Provides information to market•Finances•Authorizes and revokes licenses

Schools: •Define instructional model and conduct assessments

Market: •Determines the distribution of schools

Page 35: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

The decision of which instructional vision should take into account historical context

Central Government

Schools

Model Axis

Control Axis

UniformModel

DiverseModels

Limited State

Quality Contracts

Differentiated Instruction

Managed Instruction

Page 36: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

7. Conclusions, Next Steps

To raise student learning, there is no one “magic bullet”

A combination of policies are needed to influence students, schools, and institutions – and all participants

Importance of using empirical evidence to inform education policy making

Designing an evaluation strategy at the outset of an intervention improves the quality/reliability of impact evaluation findings

Page 37: Developing Human Capital for Economic Growth Emiliana Vegas The World Bank May 14, 2007

Developing Human Capital for Economic Growth

Emiliana VegasThe World Bank

[email protected]