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The Heritage Foundation and the American Enterprise Institute have put out a report purporting to show that public school teachers are overpaid. It's 23 pages of elaborate statistical justification of right-wing beliefs, all built on a foundation of right-wing assumptions. The basic claims are that while teachers are underpaid relative to other people with similar levels of education, in fact they are overpaid because education programs are easier than other majors and also, teachers are stupid; that public school teachers earn more than private school teachers and this shows they earn more than the market should support; and that people who leave teaching earn less while people who enter teaching earn more, therefore teachers are overpaid.

We examine earnings records for more than 130,000 classroom teachers employed by Florida public schools between the 2001-02 and 2006-07 school years, roughly 35,000 of whom left the classroom during that time.  A majority of those leaving the classroom remained employed by public school districts.  Among teachers in grades 4-8 leaving for other industries, a 1 standard deviation increase in estimated value-added to student math and reading achievement is associated with 6-8 percent higher earnings outside of teaching.  The relationship between effectiveness and earnings is stronger in other industries than it is for the same groups of teachers while in the classroom, suggesting that current compensation systems do not fully account for the higher opportunity wages of effective teachers. 

I'd like to begin by thanking my teachers in the fifth, sixth and seventh grades, Mrs. Pulaski, Mr. Burke and Miss Elmer. They taught us percentages and showed us how to "round down," which I am doing now. The U.S. population is 312,624,000, and we have 3,198,000 public school teachers, which computes to 1%. But this is not the 1% composed of Wall Street fat cats, professional athletes, entertainers and other rich people. I guarantee there's no overlap between the two groups. The average teacher today earns about $55,000. At least 75 CEOs earn that much in one day, every day, 365 days a year. According to the AFL-CIO's "Executive PayWatch," the CEO who ranked No. 75, David Cote of Honeywell, was paid $20,154,012, for a daily rate of $55,216.47.

Are teachers' impacts on students' test scores ("value-added") a good measure of their quality? This question has sparked debate largely because of disagreement about (1) whether value-added (VA) provides unbiased estimates of teachers' impacts on student achievement and (2) whether high-VA teachers improve students' long-term outcomes. We address these two issues by analyzing school district data from grades 3-8 for 2.5 million children linked to tax records on parent characteristics and adult outcomes. We find no evidence of bias in VA estimates using previously unobserved parent characteristics and a quasi-experimental research design based on changes in teaching staff. Students assigned to high-VA teachers are more likely to attend college, attend higher- ranked colleges, earn higher salaries, live in higher SES neighborhoods, and save more for retirement. They are also less likely to have children as teenagers. Teachers have large impacts in all grades from 4 to 8. On average, a one standard deviation improvment in teacher VA in a single grade raises earnings by about 1% at age 28. Replacing a teacher whose VA is in the bottom 5% with an average teacher would increase students' lifetime income by more than $250,000 for the average classroom in our sample. We conclude that good teachers create substantial economic value and that test score impacts are helpful in identifying such teachers.

This paper examines the effect of early childhood investments on college enrollment and degree completion. We use the random assignment in the Project STAR experiment to estimate the effect of smaller classes in primary school on college entry, college choice, and degree completion. We improve on existing work in this area with unusually detailed data on college enrollment spells and the previously unexplored outcome of college degree completion. We find that assignment to a small class increases the probability of attending college by 2.7 percentage points, with effects more than twice as large among blacks. Among those with the lowest ex ante probability of attending college, the effect is 11 percentage points. Smaller classes increase the likelihood of earning a college degree by 1.6 percentage points and shift students towards high-earning fields such as STEM (science, technology, engineering and medicine), business and economics. We confirm the standard finding that test score effects fade out by middle school, but show that test score effects at the time of the experiment are an excellent predictor of long-term improvements in postsecondary outcomes. We compare the costs and impacts of this intervention with other tools for increasing postsecondary attainment, such as Head Start and financial aid, and conclude that early investments are no more cost effective than later investments in boosting adult educational attainment.

There is some controversy over the fact that Florida's recently-announced value-added model (one of a class often called "covariate adjustment models"), which will be used to determine merit pay bonuses and other high-stakes decisions, doesn't include a direct measure of poverty. Personally, I support adding a direct income proxy to these models, if for no other reason than to avoid this type of debate (and to facilitate the disaggregation of results for instructional purposes). It does bear pointing out, however, that the measure that's almost always used as a proxy for income/poverty - students' eligibility for free/reduced-price lunch - is terrible as a poverty (or income) gauge. It tells you only whether a student's family has earnings below (or above) a given threshold (usually 185 percent of the poverty line), and this masks most of the variation among both eligible and non-eligible students. For example, families with incomes of $5,000 and $20,000 might both be coded as eligible, while families earning $40,000 and $400,000 are both coded as not eligible. A lot of hugely important information gets ignored this way, especially when the vast majority of students are (or are not) eligible, as is the case in many schools and districts. That said, it's not quite accurate to assert that Florida and similar models "don't control for poverty." The model may not include a direct income measure, but it does control for prior achievement (a student's test score in the previous year[s]). And a student's test score is probably a better proxy for income than whether or not they're eligible for free/reduced-price lunch.

"The 2013 Attack on Teachers included the vicious slow impoverishment of elderly retired teachers. By attacking the earned delayed compensation (pensions) of active and retired teachers, the corporate led war against public education hits a terrorist level of ruthlessness. Who wishes to teach if they are assured of having their paychecks cut and plundered by corporate controlled legislators when they become old? Yes, this is The Shock Doctrine applied to teachers in state after state. Teachers, students, parents, taxpayers and the future of America are victims on the sacrificial altar of Insane Profit."

We study the impact of a public school choice lottery in Charlotte-Mecklenburg (CMS) on postsecondary attainment. We match CMS administrative records to the National Student Clearinghouse (NSC), a nationwide database of college enrollment. Among applicants with low-quality neighborhood schools, lottery winners are more likely than lottery losers to graduate from high school, attend a four-year college, and earn a bachelor's degree. They are twice as likely to earn a degree from an elite university. The results suggest that school choice can improve students' longer-term life chances when they gain access to schools that are better on observed dimensions of quality.

We study the impact of a public school choice lottery in Charlotte-Mecklenburg (CMS) on postsecondary attainment. We match CMS administrative records to the National Student Clearinghouse (NSC), a nationwide database of college enrollment. Among applicants with low-quality neighborhood schools, lottery winners are more likely than lottery losers to graduate from high school, attend a four-year college, and earn a bachelor's degree. They are twice as likely to earn a degree from an elite university. The results suggest that school choice can improve students' longer-term life chances when they gain access to schools that are better on observed dimensions of quality.

Education policies focusing on equity in education may be a particularly useful way for countries to increase earnings mobility between generations and reduce income inequality over time. Countries can work towards this goal by giving equal opportunities to both disadvantaged and advantaged students to achieve strong academic outcomes - laying a pathway for them to continue on to higher levels of education and eventually secure good jobs.

Replacing a bad teacher with an average or a good one has measurable economic benefits such as boosting a student's lifetime earnings by hundreds of thousands of dollars, according to a new study done in part by Harvard University economist Raj Chetty. Ray Suarez and Chetty discuss the study's findings.

Education, Occupations, Lifetime Earnings

"In the Michael Bloomberg era of school reform, we hear a lot about rising educational standards. "When Dennis Walcott became chancellor," Josh Thomases, a deputy chief academic officer in the city's Department of Education, tells the Voice, "one of his first acts was to say the correct bar was no longer a high school diploma, but career and college readiness." Put another way, New York City officials openly admit that a high school diploma earned in our public schools today does not mean that a student is ready for college. In fact, 80 percent of New York public school graduates who enrolled in City University of New York community colleges last fall still needed high school level instruction-also known as remediation-in reading, writing, and especially math. Despite the department's proclamations, that percentage is up, not down, from 71 percent a few years ago."

"The growing role of class in academic success has taken experts by surprise since it follows decades of equal opportunity efforts and counters racial trends, where differences have narrowed. It adds to fears over recent evidence suggesting that low-income Americans have lower chances of upward mobility than counterparts in Canada and Western Europe. Thirty years ago, there was a 31 percentage point difference between the share of prosperous and poor Americans who earned bachelor's degrees, according to Martha J. Bailey and Susan M. Dynarski of the University of Michigan. Now the gap is 45 points. While both groups improved their odds of finishing college, the affluent improved much more, widening their sizable lead."

If your child's teacher seems a little bit on edge this year, it might not be your imagination. Education reforms now going into effect in Indiana, and similar ones sweeping the nation, are targeting something many Americans consider to be strictly off-limits: their paychecks. The laws passed in 2011 and being implemented over the next two or three years were partly based on the principle of merit pay. Under Indiana's new law, the state will ask that test performance of students be factored into pay raises for the first time. That is a major shift away from the rigid pay tables in most school districts that awarded raises primarily based on a teacher's years of experience and the academic degrees they earned.

After three postponed attempts, New York State is on track to eliminate a set of less demanding exams that thousands of students with disabilities have used to earn diplomas. But where the state is closing a door, it is opening another one - or several. In a proposal that the Board of Regents will discuss at its meeting next week, the State Education Department has suggested creating a new safety net for students with disabilities, many of whom could fail to graduate from high school once they must take the more difficult exams.

Over at The Nation I have a new piece looking at surveys of public school teachers, one of which found job satisfaction at its lowest point since 1989. The most important thing to note is that polling shows teachers are not unhappy because they resent new accountability policies like the more stringent teacher evaluations instituted in response to President Obama's Race to the Top program. In fact, most teachers support using multiple measures of student learning to assess educators, and most believe it should take longer to earn tenure (an average of 5.4 years according to the Gates/Scholastic poll) than it currently does (an average of 3.1 years across all states). 

A few weeks ago, I had the opportunity to meet with one of the Department of Education's Teaching Ambassador Fellows to give feedback on a not-yet-public draft of the policy proposal before it is offered to schools. While there was much to like about the proposal, it also contained some poorly conceived ideas that would be ineffective at best, and at worst could further damage the nation's education system. Project RESPECT calls for a three-pronged reform of the teaching profession. It envisions a reorganization of schools that would use technology and aides to put more effective teachers in front of more students, coupled with a longer school day to give teachers more time for professional growth. To find more effective teachers, it calls for an expansion of entry points into the profession, with a higher bar for earning a permanent position. Finally, it calls for increased compensation for career teachers who both stay in the classroom and take on various teacher-leader roles.

This NBER report concludes that teachers whose students tend to show high gains on their test scores (called "high value-added teachers") also contribute to later student success in young adulthood, as indicated by outcomes such as college attendance and future earnings. To support this claim, it is not sufficient for researchers to show an observed association between teacher value-added and later outcomes in young adulthood. It is also necessary to rule out plausible alternative explanations-for example, that parents who did the most to promote their offspring's long-term success also endeavored to secure high value-added teachers for their children. This review explains that, for the most part, the evidence needed to rule out these alternatives is missing from the report. Thus, policy-makers should tread cautiously in their reaction: the case has not been proved.

Instead of serving as a springboard to social mobility as it did for the first decades after World War II, college education today is reinforcing class stratification, with a huge majority of the 24 percent of Americans aged 25 to 29 currently holding a bachelor's degree coming from families with earnings above the median income.