Quality of Education and Quality of Education and Quality of Life in Latin Quality of Life in Latin

America and the CaribbeanAmerica and the Caribbean

An explorationAn exploration

Juan Carlos NavarroJuan Carlos Navarro

Definitions of education “quality”Definitions of education “quality”1.1. As test scores in a few subjects or overall As test scores in a few subjects or overall

cognitive measurements (linked or not to some cognitive measurements (linked or not to some notion of compliance with standards)notion of compliance with standards)

2.2. As value added (mostly, ability to compensate As value added (mostly, ability to compensate exogenous disadvantages)exogenous disadvantages)

3.3. As labor-market relevantAs labor-market relevant4.4. As customer (parent, student, employer) As customer (parent, student, employer)

satisfactionsatisfaction5.5. As a key source of numerous and highly valued As a key source of numerous and highly valued

externalities (civic values, caring environments externalities (civic values, caring environments for children, common culture, social cohesion).for children, common culture, social cohesion).

1.Quality as test scores1.Quality as test scores

PISA Scores on the Reading PISA Scores on the Reading ScaleScale

250

300

350

400

450

500

550

600

650

Finland Korea OECD Latin America

Sco

res

Highest 25% Lowest 25% Mean Score

OECD Program for International Student Assessment

Persistent low quality…Persistent low quality…Distribution of students by level of proficiency in reading

Quality and QuantityQuality and Quantity

% of young people “lacking” % of young people “lacking” educationeducation

Country% did not complete grade 9

(1)Mean PISA Score on the

reading scale

% below or at level 1 on the Reading Scale (under 407)

(2)

Total fraction of cohort that "lacks education"

(either did not complete grade 9 or inadequate

learning achievement) (3)

Argentina 16.8 418 43.9 53.3Brazil 43.3 403 50 71.6Chile 10.1 410 48.2 53.4Mexico 27.9 400 52 65.4Peru 24.8 327 79.6 84.7Uruguay 31.4 434 40 58.8

Source: author`s estimates using Pritchet`s “lack of education” indicator

What we knowWhat we knowLAC severely and consistently underperforms, LAC severely and consistently underperforms, relative to OECD and Asian countries.relative to OECD and Asian countries.LAC`s performance is lower than what could be LAC`s performance is lower than what could be expected given GDP per capita and education expected given GDP per capita and education spending measurementsspending measurementsGiven demonstrated influence of quality as Given demonstrated influence of quality as measured by test scores on growth, low quality measured by test scores on growth, low quality of education is an outstanding force undermining of education is an outstanding force undermining growth in the region growth in the regionAt the individual level, one standard deviation in At the individual level, one standard deviation in math scores is associated with 10 percent math scores is associated with 10 percent income variations over time.income variations over time.

We need to take a closer lookWe need to take a closer look

Source: The following analysis follows OECD and UIS standard analysis ofPISA results. See in particular Willms (2006)

Gradient analysisGradient analysis

The level of the gradient tells us that the average score The level of the gradient tells us that the average score in PISA for Argentinian students is lower accross all in PISA for Argentinian students is lower accross all levels of SES (socioeconomic status) when compared to levels of SES (socioeconomic status) when compared to OECD`s average.OECD`s average.The slope of the gradient suggests that the effect of SES The slope of the gradient suggests that the effect of SES on scores is not unlike the average effect in OECD on scores is not unlike the average effect in OECD countries (the expected reading performance increases countries (the expected reading performance increases by 42.6 points for one St.deviation increase in SES).by 42.6 points for one St.deviation increase in SES).The length or the gradient lines indicate the range within The length or the gradient lines indicate the range within which 90 percent of students lie. In Argentina this range which 90 percent of students lie. In Argentina this range is –2.72 to 1.33, while for the OECD the corresponding is –2.72 to 1.33, while for the OECD the corresponding range is –1.71 to 1.55.range is –1.71 to 1.55.

School profile analysisSchool profile analysisMore than half of schools in the Argentinian sample are More than half of schools in the Argentinian sample are below the bottom 20% of OECD SES scale (-0.82).below the bottom 20% of OECD SES scale (-0.82).Above that point, the range from the lowest to the poorest Above that point, the range from the lowest to the poorest performing schools is about 80 points, similar to OECD performing schools is about 80 points, similar to OECD variation.variation.Below, variation in scores spans over 300 points, with the Below, variation in scores spans over 300 points, with the majority with very low performance levels.majority with very low performance levels.For 15 year-old students performance increases 70 points For 15 year-old students performance increases 70 points by each one unit increase in school mean SES.by each one unit increase in school mean SES.An implication is that in LAC students from low SES An implication is that in LAC students from low SES background tend to be disadvantaged, but that background tend to be disadvantaged, but that disadvantage is compounded by the fact that they tend to be disadvantage is compounded by the fact that they tend to be highly concentrated into low SES, low performance, schoolshighly concentrated into low SES, low performance, schools

What we knowWhat we knowFor PISA, only 7.4% of the variation in reading performance is due to variation among countries. The rest is distributed between differences among children, their background and the characteristics of the schools they attend.

The fact that so many low income children are concentrated in a large number of schools is clearly affecting average measurements of quality of education in the region.

Given extreme income inequality in Latin America, education systems have a special role in equalizing social and economic opportunities, presumably a major issue in terms of quality of life: two societies with the same income distribution feel very differently depending upon whether winners and losers are always the same or can be expected to rotate according to some kind of meritocratic principle.

What we knowWhat we know

Since gradients tend to remain parallel along the SES Since gradients tend to remain parallel along the SES range, even priviledged children in developing countries range, even priviledged children in developing countries seem to have a poorer performance than their peers in seem to have a poorer performance than their peers in developed economies. This suggest either measurement developed economies. This suggest either measurement issues or systemic quality issues beyond the impact of issues or systemic quality issues beyond the impact of SES on individual performance.SES on individual performance.

PISA tests children at 15. By then the differences in skills PISA tests children at 15. By then the differences in skills between a child in a poor school and one in a good between a child in a poor school and one in a good school, at a given SES level, could be as large as 4 school, at a given SES level, could be as large as 4 grade levels. There are indications (from PIRLS), that grade levels. There are indications (from PIRLS), that these differences are well under way at grade 4.these differences are well under way at grade 4.

Average Years of Education by Average Years of Education by Income levelIncome level

0

2

4

6

8

10

12

14

El Salv

ador

Nicara

gua

Hondu

ras

Brasil

Mex

ico

Parag

uay

Peru

Ecuad

or

Costa

Rica

Venez

uela

Panam

aChil

e

10% Más alto 20% Más bajjo

2.Quality as value added2.Quality as value added

What we knowWhat we knowSchools do have the potential for offsetting socio-economic disadvantage, to a large extent. For a student of a given SES, the difference between being in a good school as opposed to being in a bad school can be in the order of 4 grade levels.The distribution of schools able to do this effectively is not clearly correlated with either the private-public dimension, nor with any other easily observable characteristic of the school.Given the widespread variation in school performance in the region, even within the same SES level, luck with respect to the particular school a child ends up attending is a serious determinant of skill acquisition and individual earning potential over the life time of individuals.

3.Quality as education that is 3.Quality as education that is labor market-relevantlabor market-relevant

Skill-biased economic changeSkill-biased economic changeEconomy-wide measures of routine and non-routine task input (US 1959-1998)

Source: Murnane and Levy, 2001

Education and labor markets in Education and labor markets in the knowledge economythe knowledge economy

02468

10

1214161820

1990 2000

IRR Sec. IRR HE

}{

%

ICT:ICT: Internet Users per 100 Inhabitants Internet Users per 100 Inhabitants

0

10

20

30

40

50

60

70

80 2005

2000Other Countries Latin America & Caribbean

ICT:ICT: Personal Computers per 100 Inhabitants Personal Computers per 100 Inhabitants

0

10

20

30

40

50

60

70

80

902004

2000

Latin America & CaribbeanOther Countries

Computers at home and PISA Computers at home and PISA scoresscores

0.000.100.200.300.400.500.600.700.800.901.00

Mexico Brasil Esp.

Niv. 1Niv. 4 y 5

Source: OCDE, 2003

What we knowWhat we knowWorkers with better quality skills are not necessarily able to get and hold Workers with better quality skills are not necessarily able to get and hold jobs or better jobs (the ability of a society to use the human capital it has jobs or better jobs (the ability of a society to use the human capital it has created is the final arbiter of whether investments in human capital are not created is the final arbiter of whether investments in human capital are not wasted).wasted).Although skilled workers seem less likely to suffer prolonged Although skilled workers seem less likely to suffer prolonged unemployment (not being unemployed tends to be considered a major unemployment (not being unemployed tends to be considered a major determinant of personal welfare and happiness).determinant of personal welfare and happiness).Skill premiums are growing: Accelerated and technology-led economic Skill premiums are growing: Accelerated and technology-led economic change is rapidly changing the skill set which can be called relevant for change is rapidly changing the skill set which can be called relevant for workers in the world, LAC included.workers in the world, LAC included.The ways to acquire such skill set are also changing and are heavily The ways to acquire such skill set are also changing and are heavily dependent on access to information technology, connectivity and digital dependent on access to information technology, connectivity and digital media, areas in which the region lags severely behind.media, areas in which the region lags severely behind.Schools and formal education institutions have a hard time adapting to Schools and formal education institutions have a hard time adapting to this: relevant learning could be becoming less dependent from the school this: relevant learning could be becoming less dependent from the school systems as we know them. The real action in terms of education may be systems as we know them. The real action in terms of education may be moving somewhere else.moving somewhere else.

4.Quality as costumer 4.Quality as costumer satisfactionsatisfaction

What we knowWhat we know

Parents in LAC tend to have a good opinion of the Parents in LAC tend to have a good opinion of the schools their children attend.schools their children attend.High school students tend to dislike the schools High school students tend to dislike the schools they are enrolled in. They are bored and leave they are enrolled in. They are bored and leave even when they find no employment. More even when they find no employment. More recently, they have become more vocal about it recently, they have become more vocal about it (see Chile`s uprising earlier this year).(see Chile`s uprising earlier this year).Employers tend to have low expectations Employers tend to have low expectations regarding the graduates of the mainstream school regarding the graduates of the mainstream school system. To a significant extent, they take for system. To a significant extent, they take for granted that the firms will have to re-train them granted that the firms will have to re-train them anyway.anyway.

Just to make things complicatedJust to make things complicated

Education quality, whatever the definition, is not Education quality, whatever the definition, is not easily perceived.easily perceived.Education is a multidimensional product (parents Education is a multidimensional product (parents may be looking for something other than good may be looking for something other than good test scores: discipline, warm school climate, test scores: discipline, warm school climate, safety, social relationships…)safety, social relationships…)There are reasons to believe that education -and There are reasons to believe that education -and education quality- is not equally valued across education quality- is not equally valued across different national economies and cultures.different national economies and cultures.

5.Education quality and 5.Education quality and externalitiesexternalities

What we knowWhat we know

Health outcomes (through fertility, mother-Health outcomes (through fertility, mother-child care)child care)

Population growthPopulation growth

Political participationPolitical participation

MigrationMigration

Overall participation in civil lifeOverall participation in civil life

Education quality is a major determinant of:

A word on universitiesA word on universities

RegionRegion Top 20Top 20 Top 100Top 100 Top 500Top 500

North North AmericaAmerica

1717 5252 197197

EuropeEurope 22 3737 209209

Asia/PacificAsia/Pacific 11 88 8989

Latin Latin AmericaAmerica

00 33 77

TOTALTOTAL 2020 100100 500500

Source: Liu and Yeng, 2005.