1. Developing Human Capital for Economic Growth
Emiliana Vegas
The World Bank
May 14, 2007

2. Contents Introduction, Motivation and Background
Why does student learning matter?
Why focus on student learning in Latin America and the Caribbean?
Methodological approach
How is student learning achieved?
Economic, social and political conditions
Student-side factors
School-side factors
Institutional factors
Ensuring that all students learn
Conclusions, Next Steps

3. 1. Introduction, Motivation and Background
Human capital is a necessary condition for economic growth
While in the past, much effort focused on expanding access, we now understand that human capital is much more than educational attainment
Skills acquisition and the capacity to continue learning throughout the lifecycle are needed to develop individuals and to foster the rise in productivity needed for economic growth

4. Latin America & the Caribbean has achieved progress in developing human capital
Access to basic education is mostly universal
Institutional capacity to assess student learning has improved
Important innovations and pilot programs
Strengthened research capacity in education
Stronger partnerships with the private sector and donor community

5. But important challenges remain for the development of the HC needed for sustained growth
Increase access in higher and early childhood education, and reduce gaps across groups
Improve completion rates in basic education
Raise student learning outcomes
Reduce gaps in student learning between Latin America and the Caribbean and OECD, East Asia
Improve the relevance of education in a changing world

6. Raising student learning
Is, arguably, the key challenge for the region in the 21st century
We have recently completed a study on this topic (Vegas and Petrow, forthcoming), Raising Student Learning in Latin America: The Challenge for the 21st Century

7. 2. Why does student learning matter?
Education was established as a human right in 1948 and is viewed as such in Jomtien and Dakar
Learning and cognitive skills:
Have greater returns in the labor market than years of education
Have important effects on economic growth and competitiveness
Also affect individuals’ health, fertility, political participation, and risky behaviors
Education quality can reduce (or perpetuate) income and social inequalities

8. 3. Why focus on student learning in Latin America and the Caribbean?
Educational performance indicators are exceedingly low and exhibit high inequalities within some Latin American countries
Inequalities in learning outcomes within countries are often related to socioeconomic differences
Ethnic and racial inequalities also exist, especially in ethnically diverse countries
Few Latin American students in the region enjoy an education of high quality

9. PISA 2003 Pisa 2003 Mean Standard Deviation Mean reading S.D. reading
100
200
300
400
500
600
PERU
BRAZIL
MEXICO
CHILE
ARGENTINA
URUGUAY
TURKEY
UNITED STATES
SPAIN
HUNGARY
IRELAND
AUSTRIA
HONG KONG
FRANCE
NEW ZEALAND
AUSTRALIA
CANADA
JAPAN
KOREA
FINLAND
Mean 20 40 60 80
120
140
Standard Deviation
Mean reading
S.D. reading
Pisa 2003

10. PISA math scores by student background
100
200
300
400
500
600 1 2 3 4
Socio-economic quartile
Average PISA Score in Mathematics 2003
Mexico
Brazil
Uruguay
OECD
Source: PISA 2003

11. Average achievement gap between indigenous and non-indigenous students in rural schools in Guatemala
Maybe graph from PREAL with Brazil, Ecuador and Guatemala?
Source: McEwan 2006

12. Percentage of students by reading level in PISA 20031%
14,7% 5%
33,4%
17%
31,7%
30%
14,6%
28%
4,6%
20%
1,1%
Chile
Finland
Source: PISA 2003

13. 4. Methodological approach
Develop a conceptual approach for analyzing factors and policies that affect student learning outcomes
Identify gaps in knowledge and conduct new research to fill those gaps
Synthesize findings from new and existing research on factors and policies that affect student learning outcomes in Latin America and the Caribbean and the rest of the world
Intended audience: education policy makers, researchers, opinion-makers, and Bank staff involved in education operations

14. 5. How is student learning achieved?
Schools
Endowments and Behaviors of
Teachers
Authorities
Economic, political,
and social context
Students
Parents
Families
Education Policy
Policy actions
Specific programs
Systemic reforms
The Education System
Its organization and institutionality
Learning

15. (a). How do economic, political and social conditions affect student learning?
A country’s economic resources can determine potential education investment that may affect achievement levels:
Public investment in education in Latin American has increased in recent years but is still below OECD norms
There is no obvious relationship between expenditure and standardized test achievement, but low-performing countries tend to be low-spending countries
How resources are invested in education matters more than how much
Political commitment to student learning outcomes impacts not only funding, but also policies
Social inequalities are reflected in learning. Countries with higher income inequality tend to have larger differences in test scores across students

16. A positive relationship exists between earnings and education inequality

17. (b) Students’ endowments and behaviors affect their learning
¿What do students bring with them to school?
age
pre-primary schooling -
cognitive development
natural ability
What kind of support do they receive in the home?
values
socioeconomic status
parents’ education
costs
income
books in the home
time for
time for homework
homework/work
Learning

18. What do students bring with them to school?
Previous research has found that most of the variation in learning outcomes is explained by student-side factors
A child’s age when entering primary school can affect her trajectory through the education system
The preparation a child receives before entering primary school has a strong effect on later learning
A child’s access to pre-primary schooling can also greatly help improve the quality of and reduce inequalities in primary and secondary education
A child’s health can also affect how well s/he learns

19. How do parents and families support education?
Household factors and the support that children have at home have large effects on student’s success in school
Socioeconomic status matters for learning outcomes
Parental education and occupation also matter for student learning
Books in the home have a consistently strong and positive effect on student performance across international assessments and subjects

20. Policies affecting children’s endowments and behaviors
¿What do students bring with them to school?
age
pre-primary schooling -
cognitive development
natural ability
time for
homework/work
What kind of support do they receive in the home?
socioeconomic status
costs
values
parents’ education
income
books in the home
Learning
time for homework
Early Childhood Education
CCTs
Education Policy

21. Early Childhood Development
Children’s age and preparedness when entering primary school can affect their school careers and life outcomes (McEwan and Shapiro 2006)
Regional and international evidence indicates that ECE may be one of the most effective interventions for improving student learning (Berlinski, Galiani and Gertler 2005; Berlinski Galiani and Manacorda 2006)

22. CCTs and student learning
Reducing the cost of school is one of the simplest ways to increase participation, but little is known about its benefit to student learning
Patrinos and Gertler (2006) found that Mexico’s Oportunidades helped reduce failure, repetition and dropout rates

23. (c.) Schools’ endowments and behaviors also affect student learning
How effective are teachers?
rotation and turnover
knowledge
pedagogy
time in the profession
professional calling
motivation
What are the characteristics of schools?
infrastructure
materials and textbooks
class size
peer group and school climate
time students spend in the classroom
Learning

24. How effective are teachers?
The characteristics and behaviors of school staff, especially teachers, have a huge impact on student learning
Evidence of the impact of teachers’ observable characteristics, such as years of education and experience, on student learning is scant and inconclusive

25. Policies addressing teachers and teaching

26. Policies addressing teachers and teaching
How teachers are paid, both in absolute levels and relative to comparable workers, can affect teaching quality
There is also limited evidence that salary level can have a beneficial impact on student outcomes
Salary structure also affects teachers and the work teachers do
Recent evidence from Uruguay shows that the country’s system of teacher assignment may be contributing to inequality between schools
Teacher education and professional development can also act as an incentive to teachers, although evidence of their impact on student learning is scarce

27. Teachers’ Salary Structures are Different than those of Non-teachers
Experience or education
Salary
Teachers
Other workers
Teachers’ salaries are more compressed – they vary little according to teachers’ level of schooling, years of experience, gender, or urban/rural location.
They begin higher but have lower returns to schooling and to experience.
Teachers’ pay does not vary according to gender or to urban/rural location.
Source: Vegas and Umansky (2005)

28. Pay Incentives are in Place in Few Countries
Nearly 90% of teacher pay in Bolivia is based on education and experience
In Chile, 40% of teacher salaries are not based on these factors but rather on working in difficult conditions, on having additional administrative responsibilities, on being a master teacher for newer teachers, and performance-based pay incentives.

29. Some implications for teacher policy
Many teachers should have a real possibility of earning additional pay based on performance
Incentives should be targeted to classrooms that can benefit most from improved teaching
Performance-based pay bonuses should be large enough to merit the extra effort
Incentives should reward actual or sustained improvements in teaching and learning
Teacher assignment policies should ensure that all schools, and especially schools serving disadvantaged students, have effective teachers
Teacher education and professional development need to be improved, systematized and transformed to address new priorities

30. What school characteristics affect student learning?
Research on the relationship between increased investment in school resources and improved student learning indicates a tenuous relationship at best
The time students spend in school can impact learning
How time is used, in addition to how much, also affects learning (Cerdán-Infantes and Vermeersch 2006)
Evidence on the effects of class size and student-teacher ratios is inconclusive
Much of the difference in achievement between indigenous and non-indigenous students can be explained by school-level factors (McEwan and Trowbridge 2006)

31. Intended instructional time by country (2000)
Source: OECD

32. Policies affecting school characteristics that contribute to student learning

33. Policy implications Students need adequate learning environments
Children need adequate time and resources to learn in schools
Compensatory programs and extended school days can improve student learning, reduce failure, repetition and dropout rates, and are especially effective for disadvantaged and indigenous students
How schools are chosen to take part in compensatory programs is important
Multigrade schools need to receive support to meet their special institutional needs, but reforms need to be properly implemented and evaluated

34. (d.) Institutional factors affect how much students learn
How are school systems administered?
level of administration
management capacity
parental/community participation
private/public provision
school choice
Learning

35. Institutional factors affecting student learning
Cross-country evidence shows that differences in the level of decision-making can impact student learning
Decentralization can also lead to higher inequality within countries (e.g. Argentina and Brazil)
Three recent studies from Central America show some positive evidence of the impact of school-based management on student learning
Recent evidence from Mexico shows that parental participation in education management can be both effective and cost efficient (Gertler, Patrinos and Rubio-Codina 2006)
The level of curricular autonomy may have an impact on student learning (Woessmann 2003)
Mixed evidence of the impact of school choice on student learning in Latin America and the Caribbean (e.g. Chile and Colombia)
School choice can have effects on student enrollments and learning outcomes, but the design and implementation of these programs can have important consequences

36. Policies affecting system organization and administration
The level of decision making matters
Providing additional support to schools with little institutional capacity can help offset disparities in a decentralized system, as can finance equalization reform
Devolving some responsibilities to schools, parents, and communities can contribute to student learning, but the design of school-based management programs affects their impact
The state plays an important role to ensure quality in a school choice system

37. 6. How can Latin American countries ensure that all students learn?
Teachers
School
Directors
Schools
Local
Government
State/Provincial
Regional
National
Performance Standards
Performance Evaluation
Performance Reporting
Impact evaluation of policies and programs
Requirements to operate
Ensuring adequate and equitable resources
Autonomy, support, and intervention
Accountability and consequences

38. Differentiated Instruction
Four Instructional Visions along a School Autonomy – Central Government Control Continuum
Market System
Quality Contracts
Differentiated Instruction
Managed Instruction
Autonomy
Control
Chile
New Zealand UK
US (MA, TX)
Finland
Spain
N. Korea

39. The role of Government differs in each vision
Quality contracts
Central Government:
Sets operating requirements
Sets performance assessment and reporting rules
Provides information to market
Finances
Authorizes and revokes licenses
Schools:
Define instructional model and conduct assessments
Market:
Determines the distribution of schools
Differentiated instruction
Schools:
Define instructional model
Central Government:
Sets operating requirements
Sets performance assessment and reporting rules
Provides information to market
Finances
Authorizes and revokes licenses
Conducts performance evaluation/assessments
Intervenes differentially in schools to ensure quality
Managed instruction
Central Government:
Sets operating requirements
Defines one instructional model for all schools
Sets performance assessment and reporting rules
Provides information to participants to ensure quality
Finances
Authorizes and revokes licenses
Conducts performance evaluation/assessments
Intervenes differentially in schools to ensure quality
Inspects schools and intervenes to ensure adhesion to the instructional model
Limited State
Central Government:
Sets operating requirements
Provides informacion to market
Finances
Schools:
Define performance standards, instructional model, and assessments
Market:
Determines the quantity, quality and distribution of schools

40. Differentiated Instruction
The decision of which instructional vision should take into account historical context
Central Government
Schools
Model Axis
Control Axis
Uniform
Model
Diverse
Models
Limited State
Quality Contracts
Differentiated Instruction
Managed Instruction

41. 7. Conclusions, Next Steps
To raise student learning, there is no one “magic bullet”
A combination of policies are needed to influence students, schools, and institutions – and all participants
Importance of using empirical evidence to inform education policy making
Designing an evaluation strategy at the outset of an intervention improves the quality/reliability of impact evaluation findings

42. Developing Human Capital for Economic Growth
Emiliana Vegas
The World Bank