What should a parent do about school?

A commenter asks,

As a parent of two girls, age 5 and 4, and assuming the “null hypothesis” is true, how should I think about school choice for my girls?

Should I just ignore school choice altogether, and send them to the local public school without much thought? Should I look for the “best school”, as defined by what criteria? The “null hypothesis” seems to point to the former, but it would be great to hear your opinion of what the practical implications are for the “null hypothesis”.

First, let me report what we did. We live on the wrong side of the school tracks in Montgomery County. Our high school’s verbal and math SAT scores were each on average 250 points lower than those in the “better” schools. Of course, “better” simply means that they had more affluent populations. In fact, when I once asked a school board member at an election forum how he could explain this SAT differential, he said that demographics were the explanation. I wanted to follow up by asking that if demographics are everything, then why does the County spend so much money on schools.

Anyway, while I had not yet formulated the Null Hypothesis, we were not worried about the fact that the schools to which we sent our children were “bad.” They seemed to be doing all right. We took one of our daughters out of public school for high school and instead sent her to a Quaker school, but that was because we thought that she needed the less authoritarian approach that the Quaker schools offer. But her younger siblings went to public school all through high school.

I have no regrets about our choices. What I regret is what they were “taught” in college. They were fed a steady diet of moral narcissism, and I am afraid that a lot of it stuck with them.

That diet of gooey, progressive sentiment starts in K-12, and that is probably what makes me most hesitant about advising parents to stick with public schools. However, the ideological stuff isn’t really different in the better private schools–it’s not like a Quaker school is going to be a libertarian hotbed. So the only way out on that score is home schooling, and I think that requires a special set of circumstances to work.

Culture, Education, and Poverty

Amy L. Wax writes,

The hallmark of no-excuses schools is a frankly paternalistic and unapologetic commitment to acculturating low-income students to the achievement-oriented habits and norms typical of their middle-class and affluent counterparts. That project is motivated by the belief that low-income children will benefit from a stable, highly structured environment in which conventional, bourgeois behaviors are actively endorsed, expected, and demanded.

…Courtesy is expected, and street language and profanity are strictly forbidden, as are fighting, loud talk, boisterous behavior, harsh teasing, and ridicule of other students, both in and out of the classroom. Students are expected to obey teachers and administrators, make eye contact, be punctual, participate in classroom discussions and school activities, work steadily, and study hard.

My thoughts:

1. Fifty years ago, all schools met most of these standards.

2. They also had gym and active recess every day, which I believe is one reason that attention deficit disorder was less prevalent in those days.

3. The null hypothesis may yet hold. She writes,

Evidence for academic improvement comes almost exclusively from scores on statewide tests, which assess relatively basic skills that many no-excuses schools target with intensive drilling. Most score gains are relatively modest and are subject to fade-out with time. Overall, the data is spotty and limited by small samples and short time frames.

4. She also discusses an approach to encouraging better behavior of low-income students by forcibly integrating them with affluent students. She points out a number of problems with this approach.

5. She cites Montgomery County, Maryland, as an example of a school district where income integration has had some success. But this comes from a handful of poor students brought in from outside the county, and Wax points out that the parents who chose to go to the trouble to participate probably were not a random sample of poor parents. Meanwhile, I can say that a resident of Montgomery County that there are large income disparities across high schools, and there are enormous disparities in test scores that go along with that. The overall percentage of students on free and reduced meals is more than one-third, which is too high for an income-integration strategy to work.

The State of State Schooling

Andy Smarick writes,

Today, almost 60 state-level government programs enable students to attend private schools, and approximately three million students enroll in about 7,000 charter schools in more than 40 states.16 In 17 cities, at least 30 percent of public school students are now enrolled in charters. The continuous growth of these programs and participating students shows no signs of abating; for instance, national enrollment in charter schools has grown by about 10 percent annually for the past decade, and student participation in private school choice programs doubled between 2011 and 2016.

As a historical matter, in the existing paradigm’s early days, especially in rural areas, some districts had only one school. So initially the district-based approach was not especially associated with technocratic thinking, a powerful central office, residence-based student assignment, and so on. But over the course of the 20th century, as America’s student population expanded and migrated and as the benefits of economies of scale became attractive, districts grew in size. Today, the average district has seven schools, but even that masks the hundreds of districts (including county-based districts in the South and urban districts nationwide) that have grown gargantuan—some with hundreds of schools and hundreds of thousands of students.

This is an interesting point. I think that a big weakness of the modern version of state-run schools is its centralization and bureaucracy. The Department of Education, especially under Democrats, reinforces the way in which power is taken away from parents, classroom teachers, and school principals.

In many private industries, firms have discovered that they cannot dictate to consumers. They have to empower employees to serve consumers. Back when school districts were small, they had to operate that way. Now they do not, and Smarick sees the trend toward choice expanding as a result.

Educational Signaling and Aggregate Productivity

One of Tyler Cowen’s readers writes,

Traditional productivity forecast research tends to assume the wage premium is entirely human capital.
[but] If sheepskin effects are purely relative status effects, then the impact on total output and income should be zero, right?

In a cross section, workers with more years of schooling will have higher wages. If you take this as an indicator of productivity differences, then in a time series in which years of schooling increase, you will predict higher productivity as these more-schooled workers enter the labor force. However, if education is only a signal of productivity and not a causal factor in productivity, then what?

Suppose that education produces zero useful work skills, and all useful skills are learned on the job. However, the workers with the best ability to learn on the job also are good at completing school. What does it mean when over time the number of workers with more education goes up? If it means that the pool of workers is getting better in terms of ability to learn on the job, then productivity should go up. If it means that more low-ability workers are somehow completing more years of schooling, then productivity should not go up at all.

Continuing with this scenario, my intuition is that the salary premium for highly-educated workers should fall, other things equal. However, in a time series, other things are not equal. For example, the technology may be changing so as to increase the value of high-ability workers. In that case, the wage premium for the high-ability educated workers could rise while that of the low-ability educated workers could fall.

Even though this scenario is extreme (education produces useful work skills in some cases), I think it may be approximately correct. In that case, the average wage premium for highly-educated workers overstates the marginal productivity premium of additional highly-educated workers over time.

In a Caplanian world, workers who do not complete a lot of schooling send an adverse signal. However, completing a lot of schooling is only a necessary condition for convincing employers that you are trainable. It is not sufficient, and firms use additional screening devices to distinguish among workers with equal numbers of years of schooling. The econometrician does not use those screening devices, and the econometrician ends up lumping together workers with different levels of ability in a way that firms do not. The firm, unlike the econometrician, sees through the worthless college degree in ____ studies. The econometrician is fooled into thinking that putting more kids through college will raise average productivity. The firm knows otherwise.

My Thoughts on Cost Disease

Scott Alexander writes

Any explanation of the form “administrative bloat” or “inefficiency” has to explain why non-bloated alternatives don’t pop up or become popular. I’m sure the CEO of Ford would love to just stop doing his job and approve every single funding request that passes his desk and pay for it by jacking up the price of cars, but at some point if he did that too much we’d all just buy Toyotas instead. Although there are some barriers to competition in the hospital market, there are fewer such barriers in the college, private school, and ambulatory clinic market. Why hasn’t competition discouraged administrative bloat here the same way it does in other industries?

1. At any given time, you will have sectors where demand is growing faster than productivity (think of health care and education) and other sectors where productivity is growing faster than demand (think of manufacturing). In the sectors where demand is growing faster than productivity, you have rising relative prices, or “cost disease.”

2. In health care and education, you also have a lot of government intervention, and government intervention almost always takes the form of subsidizing demand while restricting supply. Of course, that is going to cause relative prices to be higher, thereby exacerbating “cost disease.”

3. I would argue that there are plenty of barriers to competition in the college market. Accreditation is one such barrier. But there are natural incumbent advantages as well. You may be able to enter the market for high school graduates who are in no way prepared for college. But trying to enter the market at the level of a top 100 college is nearly impossible.

4. There are plenty of barriers in health care, also. Clinics are a good innovation, but the real expenses in health care are in chronic illnesses, and clinics do not compete to treat diabetes, Alzheimer’s, and so on.

5. It is in the nature of organizations for middle managers to try to build empires, adding to cost without necessarily creating value. In for-profit businesses, the owners have an incentive to check this, because the owners want to maximize profits. In non-profits, the natural checks operate only when revenues are not rising to cover the cost of expansion. Non-profits only worry about the bottom line when it threatens to go negative.

In short, some “cost disease” is natural. At any given time, some industries will have demand growing faster than productivity. However, much of it is artificial, as government subsidizes demand and restricts supply. Finally, some of it results from the fact that non-profits are less efficient than for-profit firms.

K-12 Spending and Children with Special Needs

Education Realist writes,

dive into “special education”, the mother of all ed spending sinkholes.

… research hasn’t revealed any promising practices to give those with mild learning disabilities higher test scores or better engagement. And that’s just where academic improvement might be possible. In many cases, expensive services are provided with no expectation of academic improvement.

Read the whole post. A couple of comments from me.

1. The special-ed phenomenon supports a Hansonian theory of education spending, which is that it is about “showing that we care.” Who can be against spending money on children with special needs?

2. In California, lawyers have a great gig. It turns out that taxpayers will pay you $350 an hour to advocate for parents of special-needs children against the taxpayer-run schools.

What I Believe About Education

This is in response to comments on some previous posts about teachers’ unions and other matters.

1. The U.S. leads the world in health care spending per person, but not in health care outcomes. Many people look at that and say that health care costs too much in the U.S., and we should be able to get the same our better outcomes by sending less. Maybe that is correct, maybe not. That is not the point here. But–

2. the U.S. leads the world in K-12 education spending per student, but not in student outcomes. Yet nobody, says that education costs too much and that we should spend less. Except–

3. me. I believe that we spend way too much on K-12 education.

4. We spend as much as we do on education in part because it is a sacred cow. We want to show that we care about children. (Yes, “showing that you care” is also Robin Hanson’s explanation for health care spending.)

5. We also spend as much as we do because of teachers’ unions. They engage in featherbedding, adding all sorts of non-teaching staff to school payrolls (and adding more union members in the process). In Montgomery`County, last time I looked, there was one person on the payroll for every 6 students, but there were more than 25 students per classroom teacher. That is why I do not think that cost disease, as discussed recently by Scott Alexander, is the full story. It’s not just that it’s hard to raise productivity in teaching. It’s that teachers’ unions cut down on productivity by continually getting schools to add non-teaching staff.

6. If I could have my way, the government would get out of the schooling business.

7. If we wish to subsidize education, we should do it through vouchers. Note that this could be done on a progressive basis, with the size of the voucher a declining function of parent’s income.

8. I do not expect educational outcomes to be any better under a voucher system. That is because I believe in the Null Hypothesis, which is that educational interventions do not make a difference.

9. However, a competitive market in education would drive down costs, so that the U.S. would get the same outcomes with much less spending.

A few additional notes:

10. When parents seek out schools with good reputations, they are going after schools where most of the students come from affluent families. The schools themselves do not do much.

11. Even within income-diverse school districts, affluent parents figure out a way to keep their kids from being surrounded by poor children.

12. I have grown increasingly uncomfortable with the leftist ideology preached in government schools.

Montgomery County (Md) Politics

A commenter asks,

You’ve mentioned many times that Montgomery is owned part and parcel by the teacher’s unions. . .what aspects of county government do they control, and how?

Don’t take my word for it. Take theirs.

“It was the Unions that put Duchy in office n it was the Unions that took her out. Justice served!” read a text message forwarded at 1:24 a.m. Wednesday by John Sparks, head of Montgomery’s firefighters union.

Trachtenberg netted support from public employee unions four years ago but later challenged what she considers unsustainable compensation packages. The cost of government salaries and benefits have soared over the past decade in Montgomery and are a key driver of ongoing budget problems in the wealthy county.

That was 2010 and it was the firefighters’ union that threw her out. But four years earlier, it was the teachers’ union that put her in.

Political observers say the incumbents could be facing tough reelection battles. Four — Floreen, Subin, Phil Andrews (D-Gaithersburg-Rockville) and Marilyn Praisner (D-Eastern County) — failed to capture endorsement from the county’s influential teachers union.

The candidates backed by the teachers’ union won, leading someone an observer to comment.

MCEA was upset that Floreen and Subin had supported delaying a 2003 cost-of-living increase that was due to teachers under their contract because of budget problems. As a result, Leventhal and challengers Elrich and Trachtenberg made the Apple Ballot, while incumbents Floreen and Subin were excluded. The Apple candidates won the top three slots, while Floreen earned the fourth seat and Subin lost. Subin’s loss was particularly notable because he was a 20-year council veteran and the long-time head of the council’s education committee.

The author concludes,

So what does the Teachers’ emergence as Montgomery County’s dominant political force mean for the future? With property tax growth slowing down, the next county council will face tough budgetary decisions. Public schools account for half of the county’s budget and would be an obvious location for cuts. But don’t expect any action there: the county’s politicians have learned that those who cross the Teachers Union once are unlikely to be given a second opportunity.

An increasing share of that budget is going to pensions and non-teaching staff who are union members. Actual classroom teachers are badly over-worked.

Because spending per student is by far the highest in the state, the WaPo constantly refers to Montgomery County as a high quality school system. However, the average outcomes in the County schools are mediocre. Students from the wealthiest parts of the County (three high schools in particular) produce good test scores, and the rest do not. Other school districts in Maryland get similar outcomes with students of similar backgrounds while spending much less money per student.

I know relatively little about Education Secretary Betsy DeVos. But I see the teachers’ union as an enemy, and they see her as an enemy. Ergo, I am inclined to view her in friendly terms.

One of My Pet Peeves

Jenna Robinson writes,

Emphasizing amenities over education also does a disservice to the faculty and students more interested in academic pursuits. A recent National Bureau of Economic Research (NBER) paper found, perhaps not surprisingly, that demand for high-quality academics is limited to only the best and brightest students, while wealthy students with low academic aptitude have the strongest demand for recreational amenities. In such an environment, university leaders likely feel financial pressure to cater more to the lowest common denominator.

She goes on to give examples. Pointer from George Leef.

I really hate the fads in college facilities. The state-of-the-art fitness centers, the Kennedy-Center-rivaling performing arts centers, etc. Brandeis University, which is hurting for money because of the Madoff scandal, nonetheless wasted money on building a new admissions office. Swarthmore College probably has the equivalent of several buildings worth of unused facilities on its campus, and it still campaigns for more donations.