nep-edu New Economics Papers
on Education
Issue of 2018‒07‒09
six papers chosen by
Marco Novarese
Università del Piemonte Orientale

  1. The Long-term Effects of Long Terms: Compulsory Schooling Reforms in Sweden By Fischer, Martin; Karlsson, Martin; Nilsson, Therese; Schwarz, Nina
  2. Student Mobility Across Schools and its Links to Underachievement By Sylvia Dixon
  3. Does Ignorance of Economic Returns and Costs Explain the Educational Aspiration Gap? Evidence from Representative Survey Experiments By Lergetporer, Philipp; Werner, Katharina; Woessmann, Ludger
  4. Do higher salaries yield better teachers and better student outcomes? By Cabrera, José María; Webbink, Dinand
  5. Active Learning Fosters Financial Behavior: Experimental Evidence By Tim Kaiser; Lukas Menkhoff
  6. The Role of Financial Literacy and Money Education on Wealth Decisions By Alessandro Bucciol; Martina Manfre'; Marcella Veronesi

  1. By: Fischer, Martin (University of Duisburg-Essen, Essen); Karlsson, Martin (University of Duisburg-Essen, Essen); Nilsson, Therese (Research Institute of Industrial Economics (IFN)); Schwarz, Nina (University of Duisburg-Essen, Essen)
    Abstract: We evaluate the impact on earnings, pensions, and further labor market outcomes of two parallel educational reforms increasing instructional time in Swedish primary school. The reforms extended the annual term length and compulsory schooling by comparable amounts. We find striking differences in the effects of the two reforms: at 5%, the returns to the term length extension were at least half as high as OLS returns to education and bene ted broad ranges of the population. The compulsory schooling extension had small (2%) albeit significant effects, which were possibly driven by an increase in post-compulsory schooling. Both reforms led to increased sorting into occupations with heavy reliance on basic skills.
    Keywords: Educational reforms; Compulsory schooling; Term length; Returns to Education
    JEL: I28 J24 J31
    Date: 2018–06–25
  2. By: Sylvia Dixon (The Treasury)
    Abstract: This paper provides information on the extent of student mobility between schools in New Zealand, measuring mobility rates at both the student and school level. It explores the characteristics of mobile students, the extent to which they become disengaged from school, and their NCEA level 1 achievement rates. It also compares the student turnover rates of different types of schools. We find that mobile students make up a sizeable sub-group within the set of students who do not achieve NCEA level 1. Analysing data for the 1998 birth cohort, we find that mobile students (defined as those attending five or more schools while aged 8-14 years) represented 9% of all students, but 26% of those who did not achieve NCEA level 1. The association of mobility with poorer attainment means that strategies to raise student achievement must work well for children who change schools frequently, as well as for children with more stable schooling patterns. At the school level, we find large variations between schools in student turnover rates and in the proportion of students who are frequent movers. Because high student turnover increases a school’s workload and costs and the complexity of teaching, it could have implications for the schooling system in areas such as resourcing, learning support and information exchange.
    Keywords: Transience; mobility; achievement; schools
    JEL: I21
    Date: 2018–04
  3. By: Lergetporer, Philipp (University of Munich); Werner, Katharina (University of Munich); Woessmann, Ludger (University of Munich)
    Abstract: The gap in university enrollment by parental education is large and persistent in many countries. In our representative survey, 74 percent of German university graduates, but only 36 percent of those without a university degree favor a university education for their children. The latter are more likely to underestimate returns and overestimate costs of university. Experimental provision of return and cost information significantly increases educational aspirations. However, it does not close the aspiration gap as university graduates respond even more strongly to the information treatment. Persistent effects in a follow-up survey indicate that participants indeed process and remember the information. Differences in economic preference parameters also cannot account for the educational aspiration gap. Our results cast doubt that ignorance of economic returns and costs explains educational inequality in Germany.
    Keywords: inequality, higher education, university, aspiration, information, returns to education, survey experiment JEL Classification: D83, I24, J24, H75
    Date: 2018
  4. By: Cabrera, José María; Webbink, Dinand
    Abstract: We study the effects of a policy aimed at attracting more experienced and better qualified teachers in primary schools in disadvantaged neighborhoods in Uruguay. Teachers in these schools could earn higher salaries. Estimates from regression discontinuity models show that the policy increased experience by two to three years. The policy was especially successful in ‘hiring experience from other schools’, but also increased tenure. However, the effect on student outcomes appears to be small. The distinction between ‘hiring or keeping’ teachers seems important for explaining this result. Keeping teachers appears to be more beneficial for students than hiring experienced teachers. We also find that the effect of the policy is better for schools that replaced teachers with less than five years of experience.
    Keywords: teacher salaries, teacher experience, student performance, disadvantaged students.
    JEL: I2 J24
    Date: 2018
  5. By: Tim Kaiser; Lukas Menkhoff
    Abstract: We conduct a randomized field experiment to study the effects of two financial education interventions offered to small-scale retailers in Western Uganda. The treatments contrast “active learning” with “traditional lecturing” within standardized lesson-plans. We find that active learning has a positive and economically meaningful impact on savings and investment outcomes, in contrast to insignificant impacts of lecturing. These results are not conditional on prior education or financial literacy. The active learning intervention seems to be superior as it works via three cognitive and non-cognitive mechanisms, i.e. increased financial knowledge, self-control, and financial confidence, while lecturing only affects financial confidence.
    Keywords: financial behavior, financial literacy, active learning, lecturing, training method, field experiment
    JEL: O16 D14 I21
    Date: 2018
  6. By: Alessandro Bucciol (Department of Economics (University of Verona)); Martina Manfre' (Department of Economics (University of Verona)); Marcella Veronesi (Department of Economics (University of Verona))
    Abstract: We investigate the impact of financial education on a wide range of wealth decisions using Dutch data from the DNB Household Survey. We consider two indexes representative of basic and advanced financial literacy acquired when adults, and money education received from the family during adolescence. Advanced financial literacy is a significant determinant of all the wealth outcomes under examination, while basic financial literacy affects only the propensity to plan for retirement and the likelihood of holding debt. Studying the individual components of financial literacy, the most relevant effects are associated with the understanding of numeracy and inflation, together with the correct knowledge of market mechanisms. Interestingly, money education received from the family during adolescence is as important as advanced financial literacy to foster individuals’ wealth decisions. We also find evidence of a gender gap, with males’ wealth decisions more affected by higher levels of financial education. Our results highlight the importance of improving financial knowledge not only through proper educational programs when adults, but also in the family environment during adolescence, where teens can learn positive attitudes towards money that are maintained throughout their life.
    Keywords: Financial literacy, Money education from family, Wealth decisions, Gender difference
    JEL: D14 I22
    Date: 2018–07

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