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C. M. Rubin

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Bad Education System -- What's the Real Cost?

Posted: 09/15/11 05:01 PM ET

Investment in education is investment in people and in a nation's future. And it is also about money!

"The cost to individuals and society of young people leaving school without a qualification keeps rising," stated OECD Secretary-General Angel GurrĂ­a in connection with the OECD's annual Education at a Glance report.

According to this report, the global economic crisis has proved much tougher for people without university degrees. Unemployment rates in 2009 among university graduates stood at 4.4% versus 11.5% for those people who did not complete high school. Current graduation trends indicate that 82% of young people today will complete upper secondary education, but those who don't will face greater challenges entering and staying in the job market. Over 50% of 15- to 19-year-olds who are not in school are unemployed or out of the labor force.

Governments therefore need to invest in education. Better educated people are less likely to need unemployment benefits or welfare assistance, and pay more tax when they enter the job market. A person with a tertiary education will pay back an average $91,000 in income taxes and social contributions over his working life, over and above what the government pays for his degree. Education pays for individuals, too: the gross earnings premium for an individual with a tertiary degree exceeds $300,000 for men and $200,000 for women across the OECD countries, over their working lives.

The Education at a Glance report, which for the first time includes an analysis of education systems in Brazil, China, India, Indonesia, Russia and South Africa, shows the global picture is changing. At present, one in three university-educated retirees resides in the U.S., but only one in five university graduates entering the workforce does. Conversely, while only 5% of adults in China have a tertiary degree, because of its population size, the country now ranks second behind the U.S. and ahead of Japan in the number of people with tertiary attainment among OECD and G20 countries. China (including Hong Kong) also contributes 19.5% of all international students from non-OECD countries.

OECD Division Head Andreas Schleicher points out: "The cross-country correlation is high (+0.51) between the proportion of students performing below proficiency level 3 in PISA and expected years not in education and unemployed or out of the labor force. If we look at the percentage of 15-29 year- olds not in education and unemployed or out of the labour force, the correlation with the PISA reading Score is -0.37, and for the proportion of students performing below proficiency level 3 in PISA, the correlation is +0.35."

Other findings of the report showed that OECD countries spent 6.1% of their GDP on education in 2008. Between 2000 and 2008, education expenditure increased at a faster rate than GDP in 25 of the 32 countries for which data are available. Between 2000 and 2009, teachers' salaries increased in real terms in most countries. The largest increases, of well over 50%, were seen in the Czech Republic, Estonia and Turkey. Women make up the majority of students and graduates in almost all OECD countries, and largely dominate in the fields of education, health and welfare, humanities and arts. Young women are more likely than men to finish upper secondary education in every OECD country except for Germany and Switzerland. Men dominate in engineering, manufacturing and construction. For more information: Education at a Glance 2011: OECD Indicators and
The Global Search for Education



 

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12:25 PM on 09/21/2011
Nobody would disagree, but this is a longterm goal and governments only like to address short term stuff. Spending money that has no immediate payback or benefit reduces reelection chances. The whole system needs an overhaul. Not to mention the USA people needs to pay more in sales taxes to help get their deficit in order. A couple extra % in sales tax will not affect consumer spending. Honestly, you wouldn't buy that item you have been looking at for a while because you are taxes an extra 2% on your purchase. A few % is the straw that broke the camels back, I don't think so.
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Peter Crosby123
03:40 PM on 09/19/2011
That's a fascinating study. It really highlights how we compare to other countries.
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JAdams77
03:29 PM on 09/19/2011
Essentially, the government gets more back than it puts in. I'd love to know why it is being so inactive about implementing change for the better, then!
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Peter Crosby123
03:37 PM on 09/19/2011
In times like this, they need all the money they can get. One would think that they'd be jumping at this chance, if not for the increased global competitiveness then at least for the money.
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Joshua Ricardo Smith
03:10 PM on 09/19/2011
This is probably the best argument I've read recently about the importance of investment in education. The payback you get far outweighs the initial costs - it's the best investment a government can make, in my opinion.
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JAdams77
03:21 PM on 09/19/2011
The key point in my opinion is that it’s better for the government AND the actual person. The government has to pay less in unemployment benefits etc whilst the person earns more over their careers. It’s a win-win situation.
hgus
It's not about the economy, stupid
03:27 PM on 09/16/2011
Off topic question.

I had a thought the other night while working with my 6 year old daughter and 5 year old son on handwriting.

We spend a significant amount of time and money teaching children how to write (penmenship). Is anyone aware of a discussion in acedemia about not doing that? After all at some point the Egyptians stopped teaching people how to write in hyrogliphics and at some point native Americans stopped teaching people how to use smoke signals.

If you think about how little you use handwriting now, and the speed at which technology (iphones, e-mail, the computer, voice recognition) is moving, will my 5 and 6 year olds ever need (or even want) to use handwriting?

Just curious about the reasons for the emphasis on handwriting in education, when even now (much less 5 years from now), the applications of it are incredibly limited.
06:32 PM on 09/16/2011
I have heard lots about dropping handwriting from curricula due to it's near extinction. However, I am just starting to hear arguments to put it back where it was previously removed due to it's aid in developing fine motor skills and coordination.
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JAdams77
03:27 PM on 09/19/2011
They're two very good reasons to keep it, along with the fact that it is an undeniably useful skill that comes in handy in my day to day life still.
hgus
It's not about the economy, stupid
10:47 PM on 09/19/2011
The neurological development value may be a valid reason to continue teaching penmenship, however, if you think about how little you use a pen and paper each day, perhaps we should consider if there are alternative ways to get the same fine motor skills development.
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Joshua Ricardo Smith
03:03 PM on 09/19/2011
I would disagree with that, I think hand writing is still a very important tool, even though for a lot of tasks it has been superseded by typing on a computer. I still use it for jotting down notes, even though I could technically do that on my iPod. The big one for me, though, is university lectures where writing is preferable over typing on a laptop (imagine 300 people all tapping away on laptops as the professor talks...). To call it defunct is premature and I'm not convinced it will ever be completely extinct.
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JAdams77
03:31 PM on 09/19/2011
Agreed - I use it on a day to day basis, it remains much more convenient than getting out my tablet to write notes, and it's more comfortable than my tablet when writing longer pieces.
12:08 PM on 09/16/2011
In the United States, but perhaps not as much in other OECD countries, students who do not go to college, and students who do not go to upper secondary school, have an option to go into the military.
My understanding is that still makes a significant dent in the unemployment issue, although the majority of the kids still face the challenge of getting work.
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Joshua Ricardo Smith
03:06 PM on 09/19/2011
Surely only a very specific group within the cohort that doesn't continue on with education would be interested or even suited for that, though, I'd imagine. Interesting to learn that this has a significant impact on unemployment figures, though.
06:14 PM on 09/15/2011
The quality of the education in primary and secondary education is not highly correlated with per-student expenses (at least as measured by school expenses - as expenditures of time and money by parents are not included). Rather, school quality is more a measure of the community from which the students are drawn. More money can provide more help for students, but such help is only productive if the students (and their parents) are willing to use it and build upon it.

The quality of college student bodies is also determined more by how they are selected than by the quality of the instruction at the institution. There are some incredibly dedicated and talented teachers at technical institutions, while some Nobel prize winners at "Name" private universities are incredibly bad instructors.

The cost of college/university education is a problem, but one that can still be managed. I expect a migration to mixed on-line and in-person classes and testing to replace many of the very large lecture hall format classes now done. This can be done cheaply. The institution would be moving more to a credentialing role, verifying the student's mastery of the material in question. Only advanced classes would rely upon the smaller in-person classes.
12:02 PM on 09/16/2011
And I believe it has been demonstrated that the quality of teaching/teachers is a critical factor in student achievement, to the extent that there are variables at the school level that make a difference. Of course, the external factors, such as family and community values, are also essential. Please see the recent article by C. M. Rubin covering the work and thoughts of Professor Charles Ungerleider, which I found insightful.