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An Economic Approach to Education Reform

Thursday, February 18, 2010

The goal of No Child Left Behind (NCLB) was to achieve 100% student proficiency by 2014, and it was originally seen as a revolutionary victory for disadvantaged students. However, despite dramatic increases in federal allocations, NCLB has failed to create measurable gains in student performance.

Nevertheless, NCLB has proven to be an effective spotlight for many problems in the public education system. Most importantly, NCLB statistics reveal the importance of qualified and effective teachers. Therefore, education reform at the federal level must consist of incentivizing “the best and the brightest” to become teachers, as well as allowing schools to enforce necessarily high standards. This could be achieved through the addition of economic incentives, a change in the current marketing strategy, and the elimination of tenure for primary and secondary school teachers.

The average starting salary for elementary, middle, and high school teachers ranges from $40-45 thousand. When compared with lawyers, doctors, and other professionals, a teacher’s salary is quite small. To counteract this disparity, the federal government must sharply decrease federal taxes. Under the current system, a teacher’s income falls under the 25% tax bracket, which makes the average teacher’s usable income just over $30 thousand. This is unacceptable, considering the importance of teachers to our society. The time has come to not only recognize this, but also to attract more qualified and effective teachers through economic incentives such as tax relief.

In addition to tax breaks, federal college loan forgiveness programs could be implemented to attract more qualified professionals to secondary education. The increased price of higher education (tuition alone at public colleges is $7,000 per year, while at private colleges it is over $26,000 per year) has forced college students to borrow more from the federal government. Financially, it becomes necessary for students to seek jobs whose salaries are large enough to pay back these loans. In order to help students transition into the teaching profession, loan forgiveness programs must be expanded to all teachers working in public school districts. Certainly these spending programs are expensive, but NCLB’s current budget will more than cover the costs.

Perhaps more importantly, these economic incentives must be implemented in conjunction with a new marketing strategy which helps to “elevate the teaching profession.” These programs will help highlight the importance of teachers, as well as the civic responsibility surrounding the profession. Every year, the Marines meet their enlistment quota while other branches of the military fail to do so. This is not because of economic incentives. Rather, it is because of the pride and satisfaction associated with the line of duty. The same sense of accomplishment must be instilled in prospective teachers through a national campaign.
Finally, schools must be able to release teachers who have been proven unfit to educate our nation’s youth. This goal can only be achieved through weakening teacher tenure in school districts. Under the current system in many states, after a certain number of years it becomes nearly impossible to fire ineffective teachers, which hurts not only the authority of the school district, but also the overall education that students receive.

Debate on education reform must begin and end with improving student performance. Programs like NCLB focus too much on testing, and too little on truly investing in our nation’s youth and their teachers. However, NCLB was effective in demonstrating the importance of quality teachers, and their impact on student performance. Therefore, a comprehensive agenda which focuses on establishing economic incentives to attract better instructors, enacting marketing campaign to elevate the status of teachers, and giving schools the control they need to enforce higher standards is needed to enact effective policy reform.

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Loan Forgiveness

I agree that certain incentives need to be implemented to induce more people to become teachers. In theory, the loan forgiveness would be a huge incentive. But in practice, it might be prohibitively expensive. Coupled with the inevitable political backlash by industries that are not experiencing such loan forgiveness programs, and this reform might be bogged down in Congress. Perhaps it would be a better idea to lower the loan interest rates or simply increase the length of time required to pay them out, so teachers can land a job and be on firm financial footing before being overwhelmed with repayments.

Prohibitively Expensive

Thanks for commenting!

I would disagree that these reforms are prohibitively expensive for two reasons:

First, the current allocations given through NCLB would vastly exceed the costs of the above program. To give you an example, last year we spent 375 million dollars on fixing one question in a national standardized exam. Additionally, NCLB will continue to cost a lot of money (projections for costs by 2014 are approximately 14 billion dollars).

Secondly, investing in teachers, and thus investing in education is a form of long-term spending that makes the United States more competitive in the future. This future competitiveness would allow the United States to have a comparative advantage in high-education markets, allowing the United States to trade and increase its future GDP.

Salaries and Tenure

Great post Aaron! One of my education professors said the one trick to getting more and better teachers were M&M. Men and Money. She expressed that women teaching in high need environments, whether urban or rural, often viewed their location as an impediment to dating.

Your thought about teacher salaries is well put. But something else to explore is when exactly these salaries rise. There was an interesting study done on this by a Duke professor.

sanford.duke.edu/research/students/spring2009-15es.pdf

Teacher evaluation is a tricky thing however. And the same tenure laws that protect our great teachers (teachers who are somewhat controversial and often butt-heads with the school administration) also protect the weak teachers. However, as the incentive with NCLB was meeting a minimum level of proficiency, and if we consider schools as a business. The conversion of additional expenditure to additional student achievement is unclear when its use is unspecified

http://publicpolicy.unc.edu/files/HSRA%20Final%20v10.pdf
(However, increasing expenditures on general classroom teachers has the most positive effect, so kudos for recognizing that)

But unfortunately, this set of minimum expectations supports a system that often seeks efficiency over effectiveness.

Some things that I think can be done to address this are:
Professional Advancement within the Teaching Profession
Professional Learning Communities
-makes teachers more accountable to each other
Strongly link student performance (in a variety of measures) to Tenure

Thoughts?

Thanks,
Grayson Cooper

Interesting Thoughts

First of all, thanks for posting, and the links you put on your response were really interesting.

I agree with your conclusions that the educational system "often seeks efficiency over effectiveness." I think that was really well put.

Let me defend weakening teacher tenure, as well as let you know where I'm coming from on the issue. In Pennsylvania, where we have some of the most powerful teacher unions in the country, it is nearly impossible to fire a teacher. Even teachers who are accused of sexual affairs with students can't be fired unless truly hard evidence is found against them. However, the good teachers that "butt heads" with the administration leave the district. Why? Because the districts, while unable to fire someone directly, can make these teachers lives particularly difficult. This happened multiple times with the teachers from my district.

I do really like your ideas to address these problems, but I'm wondering if you could go a little more into depth on the first 2.

Thanks again for commenting.