DOCUMENT RESUME EA 029 055 ED 419 293 Grissmer, David W. AUTHOR Education Productivity. TITLE National Education Knowledge Industry Association, INSTITUTION Washington, DC.; Council for Educational Development and Research, Washington, DC. Department of Education, Washington, DC. SPONS AGENCY 1998-00-00 PUB DATE NOTE 47p. RJ96006001; RJ96006101; RJ96006301; RJ96006701; RJ96006801 CONTRACT NEKIA Communications, 1200 19th Street, N.W., Suite 300, AVAILABLE FROM Washington, DC 20036; phone: 202-429-5101. Descriptive (141) Reports PUB TYPE MF01/PCO2 Plus Postage. EDRS PRICE Accountability; Elementary Secondary Education; Evaluation DESCRIPTORS Needs; Information Needs; *Measurement Objectives; Outcomes of Education; *Productivity; *School Effectiveness ABSTRACT The perception exists that the massive infusion of resources into public education has done nothing to bolster student achievement scores and that American students' scores on international assessments rank far below the scores of students from other countries. These perceptions are examined in this booklet. The focus is on education productivity and the various parameters of tnis evaluative concept. It offers a definition of education productivity and asks whether it is a useful concept to employ. The text claims that productivity research yields the most important information for policymakers in education and that these individuals need to know how to use limited resources in the most cost-effective manner, as well as what additional outputs would be achieved with additional resources. It has been shown in communicating with corporate America, taxpayers, and others that the education community must develop and monitor credible and understandable school productivity measures and that different policies and programs be compared on the basis of cost-effectiveness. Furthermore, it is claimed, austere budgets make research that is oriented toward productivity and cost-effectiveness even more important since it allows a higher level of debate regarding public education. (Contains 62 references.) (RJM) ******************************************************************************** Reproductions supplied by EDRS are the best that can be made * * * from the original document. * ******************************************************************************** Eft D I I 0 U S DEPARTMENT OF EDUCATION Office of Educational Research and Improvement EDUCATIONAL RESOURCES INFORMATION CENTER (ERIC) This document has been reproduced as received from the person or organization originating it Minor changes have been made to improve reproduction quality Points of view or opinions stated in this document do not necessarily represent official OERI position or policy 9 BEST COPY AVA lil 1 IM r MI IN IN IN IN El MI Ell OM MI MI MN MN MN MN MN Pli Ed Talk is published by NEKIA Communications 1200 19th Street, NW Suite 300 Washington, DC 20036 C202) 429-5101 Roy Forbes, Acting Executive Director tyllik Rouk, Editor Jessica N. Kennedy, Layout Artist This project has been funded at least in part with federal funds fiom the U.S. Department of Education under contract numbers R196006001, RJ96006101, RJ96006301, RJ96006701, RJ96006801, and R196006901. The content of this publication does not necessarily reflect the views or policies of the U.S. Department of Education nor does mention of trade names, commercial products, or organizations imply endorsement by the U.S. Government. Education Productivity is published in conjunction with the following education R&D institutions: Appalachia Educational Laboratory 304/347-0400 Charleston, West Virginia 25325 P.O. Box 1348 Mid-continent Regional Educational Laboratory 2550 South Parker Road, Suite 500 Aurora, Colorado 80014 303/337-0990 North Central Regional Educational Laboratory 1900 Spring Road, Suite 300 Oak Brook, Illinois 60521 630/571-4700 Pacific Resources for Education and Learning Honolulu, Hawaii 96813 808/533-6000 828 Fort Street Mall, Suite 500 South Eastern Regional Vision for Education Greensboro, North Carolina 27412 910/334-3211 P.O. Box 5367 Southwest Educational Development Laboratory Austin, Texas 78701 512/476-6861 211 East Seventh Street West Ed San Francisco, California 94107 415/565-3000 730 Harrison Street Fil 5 Preface Are our students' achievement scores going up or down? How do our students fare when matched against students from other countries? What does the research say about the productivity of our schools as opposed to productivity in other sectors of our society? What are we getting for our money? This Ed Talk publication examines these questions through a long- view education productivity lens. Some of the answers may be surprising. The Council for Educational Development and Research is made up of some of the nation's foremost institutions in the education knowledge industry, including regional educational laboratories and national education research centers. These institutions are helping educators turn findings from education research and development into successful classroom practices and are synthesizing knowledge from research and practice into useful information for education policymakers. By informing a variety of audiences about nationally significant topics in education, the Council's Ed Talk publication series complements these institutions' work. Our purpose in this particu- lar publication is to spark discussion about the accuracy of the perceptions that the public and even the research community have about the effectiveness of our education investments. The choices that we make in placing our resources as we move into the 21st century will determine whether our education productiv- ity slows or grows. This, in turn, will govern the quality of life for all Americans well into that century and perhaps even beyond it. One way to help ensure that we make the best choices in education is to first consider the data. Education Productivity by David W. Griosmer Critics accuse the nation's public schools of using their resources inefficiently and of failing to improve "productivity." The case is best presented by Eric Hanushek (1994a; 1996a). This perception of schools contrasts sharply with how the public views other sectors of our society, where it points proudly to dramatic gains in the quality and productivity of our farms, manufacturers, and the computer industry. In an age when technological advances are pushing pro- ductivity like never before, our schools seem to lag far behind. Are schools truly inefficient in their use of resources? Have the investments we made in the Great Society years added up to nothing? There is probably no more important set of questions in public education than those related to school productivity. School productivity research could tell us whether additional resources make a difference in student achievement, whether allocating additional A driving force resources to some programs is more effective than allocating them behind this to others, and which types of students benefit from more or differ- paper was the ent resource allocations. perception that the public and Answering these questions is critical to determining whether public some in the education needs more resources, needs to allocate its resources dif- ferently, or needs to fundamentally restructure in order to use its research commu- resources more effectively. nity have about K-12 education. A driving force behind this paper was the perceptions that the public and some in the research community have about K-12 education. One of these perceptions is that the massive infusion of resources 7 3 has done nothing to stop student achievement scores (as measured by SAT scores) from falling, particularly among minority students. Consequently, money makes no difference. A second perception is that American students' scores on international assessments rank far below the scores of students from other countries. Consequently, Japanese schools, for instance, are far more productive than Ameri- can schools. A third perception about schools is that private schools achieve higher test scores than public schools and that they do it with fewer resources. Consequently, private schools are more pro- ductive than public schools. If all these perceptions were correct, it certainly would seem that public education is simply not able to improve its productivity and utilize resources well. A solid case might be made for restructuring school governance so that resources could be used more effectively. However, under close scrutiny, some of the conclusions about pub- lic schools are much more favorable than public perceptions would imply. For others, there are clear reasons, seeped deep down in our Some of the culture and beliefs, for why American students appear not to do as conclusions well as students in some other countries. about public schools are much We begin by reviewing the concept of productivity as it is defined in the economic sense and as it is applied to our private sector firms more favorable and industries. We then discuss the strengths and limitations of than public applying the concept to education. We look at its application in perceptions four contexts: schools versus private sector industries, schools in the would imply. mid-1960s to the early 1990s, American versus Japanese schools, and public versus private schools. Next, we address the importance of incorporating the concept of productivity into education research and provide some examples where it would be useful. Finally we turn to the implications for research if productivity is going to be more than another passing education fad. Throughout this paper we focus on "education" productivity rather than "school" productivity. The former concept encompasses all sources of learning and support, including the most important com- ponent of productivity in learning the family. 4 8 Defining Productivity Productivity involves not only "doing better," but doing better with equal or fewer resources. If resources increase and outcomes im- Productivity prove, it does not necessarily follow that productivity improves. For instance, doubling the number of cars a factory manufactures by involves not only doubling factory capacity keeps productivity at the same level as it "doing better," was before. Productivity increases when we increase output while but doing better holding inputs constant. Or another way to increase productivity with equal or is to reduce inputs (downsize), yet still manage to keep outputs stable. fewer resources. Measuring productivity always involves measuring some outcome or output quantity per quantity of input. For instance, we measure labor productivity in our national economy by the value of the goods produced per hour of labor input. Perhaps the best, long-term example of productivity gains is in the farming sector. Farm productivity has increased markedly during this century, whether measured by output per hour of labor or out- put per unit of arable land. This gain in productivity is commonly attributed to advances in farm technology, better seeds, weed and pest control, improved management, and increased economy of scale from larger farms. One result of this increased productivity is that the number of farmers and farm laborers has declined as a propor- tion of the workforce. Since each unit of labor can produce so much more, fewer are needed. But, as this example illustrates, productivity can be a double-edged sword. On the one hand, producing more output per unit of labor input means that more goods and services can be available to soci- ety and the standard of living higher. In fact, economists believe that higher standards of living in the long term can only result from gains in productivity. That is partly why we collect an extensive amount of economic data to measure labor productivity, and why our economy provides strong incentives to increase productivity. On the other hand, increased productivity in the absence of a stronger demand for goods often requires fewer workers. Thus, employ- ment can fall in those very industries that make the most rapid 9 productivity gains. U.S. industries may have recently experienced this phenomenon when increased worker productivity, some of it due to computers, enabled them to downsize.' Ideally, if the economy is robust, new jobs created in different industries, aided by worker retraining programs, can absorb this displaced labor. Private Sector Productivity: Implicationo for Education In the long term, growing productivity is a product of our capitalistic economy. The rate of productivity growth, however, can vary mark- edly over time and among different sectors of the economy. Placing school productivity in the context of private sector productivity helps to establish reasonable expectations for productivity growth and explain productivity trends and differences among schools and school districts. The expectation has been that education reforms, innovation, and new technology would cause school productivity to rise. The labor productivity of U.S. manufacturing workers rose fairly steadily from 1949 to 1973 at a compound growth rate of about 1.8 percent per year (Monthly Labor Review, 1995). Had this trend continued, output per worker would double about every 39 years. However, private sector productivity experienced historically small increases During the after 1973. From 1973 to 1992, it grew at only a compound rate of 0.8 percent. At this rate, worker output would double only every period when 89 years. Moreover, there appears to have been negative productivity schools were most growth between 1973-1979. criticized for not improving No consensus exists on reasons for this slowdown in the growth of productivity, the productivity in manufacturing (Wolff, 1996). Some believe that U.S. as a whole the energy crisis and associated higher oil prices and inflation were part of the cause. Others say that slackening innovation and inad- was experiencing equate investment in new capital, partly caused by low savings and abnormally low Still others see inadequate higher interest rates, are to blame. levels of produc- workforce skills, partly due to poor education, as a component of tivity growth. the slowdown. Whatever the cause, it is important to remember for our later discussion that during the period when schools were most criticized for not improving productivity, the U.S. as a whole was 10