Inter-American Development Bank (IDB) The Quality of Education in Argentina An IDB Research Project FINAL DRAFT Research team: Sebastián Auguste, María Echart and Francisco Franchetti January 2008 1 Table of Contents I. Background and Objectives............................................................................................. 6 II. The Argentine Educational System.............................................................................. 11 II.1. A Brief History of the Argentine Educational System...................................... 11 II.2. Educational System Design............................................................................... 16 II.3. Argentine Educational System in Numbers ...................................................... 23 III. Data and Methodology................................................................................................ 27 III.1. Data .................................................................................................................. 27 III.2. Methodology .................................................................................................... 29 IV. International Benchmarking ....................................................................................... 36 IV.1. Structure and Coverage.................................................................................... 36 IV.2. Performance in International Tests.................................................................. 39 IV.3. Quality of Education from a Mincerian Perspective ....................................... 47 IV.4. Recent Evolution in the Quality of Education................................................. 48 IV.5. Equity in the Distribution of the Quality of Education.................................... 51 IV.6. Comparing the Educational Systems ............................................................... 58 V. Quality of Education with-in Argentina....................................................................... 78 VI. A Hierarchical Lineal Model with PISA .................................................................... 88 VI.1. Variance Decomposition ................................................................................. 88 VI.2. School Factors Related to Quality of Education.............................................. 94 VI.3. Oaxaca-Blinder Decomposition....................................................................... 96 Grouping Variables................................................................................................. 104 VII. A Hierarchical Lineal Model with PIRLS............................................................... 106 VII.1. Variance Decomposition .............................................................................. 112 VII.2. School Factors Related to Quality of Education .......................................... 114 VII.3. Oaxaca-Blinder Decomposition ................................................................... 117 VII. A Hierarchical Lineal Model with ONE ................................................................. 122 IX.1. Variance Decomposition ............................................................................... 122 IX. Peer-Group Effects in the Classroom ....................................................................... 129 X. Teachers and the Quality of Education ...................................................................... 132 X.1. Who are the teachers now? ............................................................................. 132 X.2. International Benchmarking............................................................................ 135 X.3. Recent Evolution............................................................................................. 138 XI. Conclusions and Policy Implications........................................................................ 143 References....................................................................................................................... 146 Annex A. Educational Indicators for Argentina. Annex B. Educational Indicators. International Benchmarking. Annex C. Measures of Inequality Annex D. Measuring the Quality of Education from a Mincerian Perspective Annex E. Peer Group Effect in the Classroom in Argentina Annex F. Teacher Characteristics 2 Index of Tables Table 1. Human Development Index Position/1............................................................................. 15 Table 2. Proportion of right answers, ONE test, Argentina .......................................................... 26 Table 3. Argentina compared to LATAM and Upper-Middle Income countries.......................... 37 Table 4. Argentina and selected comparators, 2004...................................................................... 39 Table 5. Performance of Argentina in International Tests (Language) ......................................... 39 Table 6. Evolution of Argentina compared to other Latin American countries ............................ 40 Table 7. Country characteristics and Expenditure in Education.................................................... 46 Table 8. Ranking by Implicit Quality of Education ...................................................................... 48 Table 9. Ranking by Implicit Quality of Education ...................................................................... 48 Table 10. Relative Evolution of Argentina in terms of Quality of Education ............................... 50 Table 11. Performance in PISA 2000 according the SES quantiles .............................................. 52 Table 12. Country Characteristics ................................................................................................. 60 Table 13. Performance in PISA..................................................................................................... 61 Table 14. Performance in PIRLS................................................................................................... 61 Table 15. Comparing PISA and PIRLS performance.................................................................... 63 Table 16. Other quality related indicators ..................................................................................... 64 Table 17. Repetition Rate by Grade .............................................................................................. 64 Table 18. Number of school hours per year .................................................................................. 65 Table 19. % of Students with Reading Problems. PIRLS ............................................................. 65 Table 20. Use of reading specialists. PIRLS ................................................................................. 66 Table 21. Parents’ Involvement. PIRLS........................................................................................ 67 Table 22. Reading Instructions. PIRLS......................................................................................... 67 Table 23. Teaching Time Allocation. PIRLS ................................................................................ 68 Table 24. Teaching methodology .................................................................................................. 68 Table 25. How teachers work with student groups ....................................................................... 69 Table 26. Use of Reading Instructional Material for students at different reading levels ............. 70 Table 27. Income Level and Educational Resources. PISA 2000 ................................................. 71 Table 28. Index Of Early Home Literacy Activities. PIRLS 2001................................................ 75 Table 29. Index Of Early Home Literacy Activities ..................................................................... 75 Table 30. Importance given by family to reading. PIRLS 2001.................................................... 75 Table 31. Availability of school resources. PIRLS 2001 .............................................................. 76 Table 32. Between-classes variation ............................................................................................. 79 Table 33. Between-schools variation ............................................................................................ 80 Table 34. Ranking of Provinces according to different measures of Quality of Education .......... 85 Table 35. Expenditure and Quality across provinces .................................................................... 86 Table 36. Percentage of variance in student performance in reading, mathematical and scientific literacy .................................................................................................................................. 89 Table 37. Percentage of variance in student performance in reading, mathematical and scientific .............................................................................................................................................. 91 Table 38. Variance Decomposition. Reading Literacy Achievement ........................................... 92 Table 39. Decomposition of the between school variation in explained and unexplained factors 93 Table 40. Estimated coefficients for school level in a 3-levels HLM model ................................ 94 Table 41. School Climate Factors ................................................................................................. 95 Table 42. School Resources Factors.............................................................................................. 96 Table 43. Oaxaca-Blinder decomposition for Similar development countries.............................. 97 Table 44. Oaxaca-Blinder decomposition for Similar Culture countries .................................... 101 Table 45. Oaxaca-Blinder decomposition for High performing countries .................................. 104 3 Table 46. Oaxaca-Blinder decomposition ................................................................................... 105 Table 47. Distribution of Reading Achievement......................................................................... 107 Table 48. Achievement in Reading for Literacy and for Informational Purposes....................... 108 Table 49. Percentages of Students Reaching PIRLS International Benchmarks in..................... 109 Table 50. HLM Estimations results............................................................................................. 115 Table 51. Length the students stay with the same teacher........................................................... 116 Table 52. Oaxaca-Blinder Decomposition, similar income level countries ................................ 118 Table 53. Variance Decomposition for between school and classrooms variation ..................... 127 Table 54. Estimated Coefficients for Classroom and School Levels .......................................... 128 Table 55. Estimated coefficients for the peer-group effects variables ........................................ 130 Table 56. Exploring the functional form of the peer group effect............................................... 131 Table 57. Evolution of the Teacher Composition........................................................................ 132 Table 58. Teachers’ parents education ........................................................................................ 135 Table 59. % of teachers with an ISCED 5A qualification in the language of assessment .......... 136 Table 60. Index of teacher participation in school decisions. PISA 2000 ................................... 137 Table 61. Teacher Characteristics ............................................................................................... 138 4 Index of Figures Figure 1. Evolution of private sector enrollment share ................................................................. 14 Figure 3. Evolution of GDP per capita .......................................................................................... 15 Figure 4. Basic Education System in Argentina............................................................................ 19 Figure 5. GNI per capita and performance in PISA ...................................................................... 41 Figure 6. GNI per capita and performance in international tests................................................... 42 Figure 7. School life expectancy and performance in international tests ...................................... 43 Figure 8. Public Expenditure in Education as a % of GNI............................................................ 43 Figure 9. Public Expenditure in Education as a % of GDP ........................................................... 44 Figure 10. Public Expenditure in Education as a % of total expenditure ...................................... 44 Figure 11. Public Expenditure in Education per pupil as a % of GDP.......................................... 45 Figure 12. Change in relative ranking between 1980 measure and 2000 measure........................ 51 Figure 13. Difference in average score between top and lowest 20% according to wealth .......... 53 Figure 14. Difference in average score between top and lowest 20% according to household socioeconomic index ............................................................................................................ 53 Figure 15. Difference in average quality between top and lowest 20% according to household socioeconomic index ............................................................................................................ 54 Figure 16. Gini coefficient for test score....................................................................................... 55 Figure 17. Gini coefficient for quality........................................................................................... 56 Figure 18. Gini coefficient for parents’ SES ................................................................................. 56 Figure 19. Relationship between inequality in quality and inequality in SES at country level..... 57 Figure 20. Distribution of students according to number of books at home. PISA 2000.............. 72 Figure 21. Proportion of students with more than 50 books at home............................................ 72 Figure 22. Index of Home Educational Resources according to SES category. PISA 2000 ......... 73 Figure 23. Income level . PISA 2000 ............................................................................................ 73 Figure 24. Proportion of Students with more than 25 Child Books at home . PIRLS 2001.......... 74 Figure 25. Proportion of Students with minimum educational resources at home . PIRLS 2001 . 74 Figure 26. Index of school violence .............................................................................................. 76 Figure 27. Relationship between Average Test Score and GDP per capita (in ppp) at province level) ..................................................................................................................................... 81 Figure 28. Relationship between the Coefficient of Variation in Test Score ................................ 81 Figure 29. Relationship between Test Quality and GDP per capita (in ppp) at province level) ... 82 Figure 30. Inequality and GDP per capita (in ppp) at province level) .......................................... 83 Figure 31. Between and within school variance decomposition with PISA.................................. 90 Figure 32. Average Reading Achievement and Early Home Literacy Activities........................ 110 Figure 33. Between and within school variation ......................................................................... 113 Figure 34. Ratio of students per teacher, PISA 2000 .................................................................. 136 Figure 35. Accumulated Distribution of teachers by deciles....................................................... 140 Figure 36. Teacher Distribution according to husband educational level ................................... 140 Figure 37. Accumulated Distribution of teachers by deciles....................................................... 142 5 I. Background and Objectives Argentina is a middle-income country with an unsuccessful history in terms of economic growth, which mirrors in education. Not a long time ago Argentina was regionally considered a country with high level of human capital and good quality of education. It was one of the first countries in Latin America to achieve almost full coverage in primary level, it reached fairly high coverage in secondary education earlier than other countries, and it is among the top countries in the region in terms of years of schooling and proportion of adult population with tertiary education. The main issue now, rather than coverage, is the quality of education. The perception is that the quality of education in Argentina has deteriorated as a result of low investment and lack of appropriate policies. Education seems not to be providing equal opportunities any more, deepening the pattern of increasing inequality observed in the last decades, in a globalized world where human capital is the key to economic development and quality of life. As a consequence, the country is falling behind the world and the region. Nevertheless, the factors affecting the quality of education in Argentina remain relatively unexplored; it has not been quantitatively proved whether the quality has deteriorated in the last decades or what factors explain the difference in achievement in international test between Argentina and the rest of world. We do not know much about what is working or what is not working in the country, what we are doing differently from successful countries, or what are the local needs and appropriate public policies. To fill that gap in just one paper is a very ambitious goal, even risky, given the poor information available. Our intention is to provide some evidence to help understand better the current situation and to identify areas for further research. Since we are interested in policy implications, we focus on those factors associated with the formal educational process that increase the individual human capital beyond the students and families’ characteristics that affect the learning process. In particular, our work analyzes the effects of primary and secondary 6 school inputs in the educational process, what lies in the “school effectiveness” branch of the literature.1 In focusing on this topic, we exclude the very important analysis of the effect of monetary inputs on achievement, more related to a cost-benefit analysis, what Lockheed and Hanushek (1988) defines “school efficiency”. Clearly, public policies in a world of scarce resources should be based on cost-benefit analysis, which gives a ranking of priorities, but the production function analysis of the literature on school effectiveness is the prerequisite for this more elaborated analysis. The process of learning is complex, and the school effectiveness literature has had problems to associate inputs with results. First, it is not easy to summarize in just one dimension an educational process that is by nature multiproduct. In a multidimensional product space quality is not univocally defined. The literature has followed two alternative approaches: i) linking wages (or labor market outcomes) with school inputs or characteristics; and ii) linking a measure of performance (typically student achievement in a standardized test) with school inputs. Both have limitations. For instance, focusing on labor market outcomes assumes that this is the only dimension that matters (what the market demands) and assumes that the labor markets work perfectly and prices correctly reflect scarcity. Using test scores, on the other hand, depends critically on the test design and whether the test is capable of capturing what is optimal for the students to learn at school. Both approaches, thus, do not solve the problem of capturing correctly in one dimension the process of education, and both are constrained by data availability. This led us to the second problem in the literature, to measure inputs quantitatively. We can tautologically define a good teacher, a good school, or a good policy as that one that increases the most the (difficult to measure) human capital of the student, but it is not easy to measure what characteristics are behind that input. The problem is that not only the product of education is multidimensional, but also the main inputs, students and teachers, are also multidimensional or heterogeneous, and there are many alternative production functions 1 There are several comprehensive reviews of this literature, see for instance Scheerens (1992), Scheerens (2000), and Pennycuick (1998). 7 relating those inputs (such as school organization and system of incentives). All these aspects are difficult to measure and much of the heterogeneity is unobservable for the analyst, what generates technical problems to establish causality. The ideal scientific experiment would be to study causality in education by carrying out a succession of randomized experiments where we assign individuals to institutions and ‘treatments’ at random and observe their responses and performances. We would randomly assign any chosen student, teacher, and school factors, a few at a time, to judge their effects and thus, slowly, would discover which forms of organization, curriculum, classroom composition, and so on are associated with desirable outcomes (Goldstein (1997)). Obviously, in the real world we cannot do this, and natural experiments are not very common. Most of the school effectiveness literature tries to infer causality in a nonrandom experiment framework where students, teachers, and other inputs are allocated probably based on unobservable characteristics. A double selection problem is common: a) students select schools and schools select students, but also b) schools select teachers and teachers select schools. In this non-randomized world it is extremely difficult to establish causality, and causality is critical for policy implications as we cannot base our policy prescriptions in spurious relationships. Therefore, despite of the measure of performance chosen or the way the multidimensionality problem is solved, the most important limitation in the school effectiveness literature is the econometric problem of identification. At best, value added estimates can be used as crude screening devices to identify ‘outliers’, but they cannot be used as definitive statements about the effect of a school per se (Goldstein & Thomas, 1996; Goldstein & Spiegelhalter, 1996). It is not surprising, therefore, that the usefulness of this literature to provide policy implications has been constantly challenged (e.g. Goldstein and Thomas (1996)). In fact, according to Rowe, Hill, and Holmes-Smith (1995), current policy initiatives are poorly supported by the available evidence, and a clear message is yet to emerge from the school effectiveness literature. 8 The first studies (such as Coleman et al (1966), Jencks et al (1972), and Plowden (1967)) were pessimistic regarding what the school can add, finding that family and neighborhood characteristics were much more important than school characteristics to explain students’ performance, what led to the conclusion that, against what most people think, school does not matter. But these papers, and most of the literature before the mid 1980s, based on simple OLS regressions, were contaminated with selection bias and endogeneity. New techniques were designed to obtain better results, such as the multilevel analysis (Mortimore et al (1988) being one of the first) and the natural experiment approach; nonetheless, the technical problem of identification persists. There is controversy about the impact of different school and teacher level variables, fed by the diversity in the results. As Hill and Rowe (1996) point out, very few studies satisfy the minimum conditions for satisfactory inference, suggesting that few positive conclusions can be derived from existing evidence. The minimum conditions can be summarized, Goldstein (1997), as: 1. a study is longitudinal so that pre-existing students’ differences and subsequent contingent events among institutions can be taken into account 2. a proper multilevel analysis is undertaken so that statistical inferences are valid and, in particular, so that ‘differential effectiveness’ is explored 3. some replication over time and space is undertaken to support replicability 4. some plausible explanation of the process in which schools become effective is available. In the particular case of Argentina, the data limitation problems are even more critical. There is no way to link workers with the school where they studied to follow a labor outcome approach, and all the standardized tests available (either national or international) are cross sectional, what does not allow to capture the evolution of the student, what is the ultimate goal of the school effectiveness approach. 9 Having these technical limitations in mind and given the data restrictions, this study analyzes the quality of education for Argentina and the factors that affect it based on test scores and following a comprehensive approach using different techniques. Basically, our strategy to analyze the quality of education in Argentina has three components. A qualitative analysis of the Argentine educational system and its recent evolution, an international benchmarking analysis based on PISA and PIRLS, and a within-Argentina analysis based on a local test (ONE) administrated to all the students in 6th grade. We have combined simple benchmarking with econometric models such as Hierarchical Lineal Models, Blinder-Oaxaca Decomposition, Juhn-Murphy-Pierce decomposition, cluster analysis, and cluster regressions. Our goal, rather than trying to establish causality, is to find stylized facts providing a rich and comprehensive descriptive analysis, which, with all its limitations, results extremely useful for Argentina given the lack of studies of this nature and the abovementioned data limitations. The rest of the work is organized as follows. Section 2 briefly describes the Argentine educational system and its recent evolution. Section 3 describes the data sets used in this study and the econometric methodology. Section 4 does a comprehensive international benchmarking to understand where Argentina is located and how Argentina differs from other countries. Section 5 explores the variation in quality of education within Argentina. Sections 6 to 8 make an econometrical analysis of the variation in internationally- and locally-based test scores on a Hierarchical Lineal Model. Section 9 estimates peer group effect in the classroom for Argentina. Section 10 analyzes the teachers’ characteristics and the recent evolution. And finally Section 11 presents the main conclusions and policy implications. 10 II. The Argentine Educational System II.1. A Brief History of the Argentine Educational System Argentina attained its independence in 1816, but it took several years for the country to organize. A long civil war and armed conflicts delayed the organization of the country, which finally started with the National Constitution in 1853. The organization of the educational system started in 1852, but it was only in 1884, when the 1420 Law of Basic Education was passed, that the National System started to shape. The 1420 Law established the State’s obligation to provide public education to children in schooling age. Any city or town with more than one thousand inhabitants had to have a primary public school. This law had a very significant effect on schooling. In 1883 only one third of the children between six and thirteen years old went to school, ratio that increased to 50% in 1914, and 75% in 1931. The number of primary schools doubled in the first 10 years, and they increased from 1,279 in 1880 to 10,776 in 1930. In terms of the federal organization of the educational system, at the beginning primary schools were the Provinces’ responsibility, but since 1890 the Federal government had started to influence. First, it conditioned the transfers to provinces (since most of the tax revenue in Argentina had been (almost from the birth of the country) collected at federal level), fulfilling the directions of the National Council of Education. Second, in 1905, the Làinez’s Law authorized the Federal Government to build schools and provide education in those cities without provincial schools. In practice, federal schools were established in almost every large city of the country, what created a somewhat asymmetric competition between provincial and national schools. Usually federal schools were in a more advantageous situation, with more resources, better paid teachers, and, consequently, a reputation for better quality. 11 Federal schools were directly managed by the National Government, which imposed a relatively homogenous standard across the country. Some argue that this federal intermission was harmful for the system, for instance Aguerrondo (2006), but there is no evidence supporting or against this hypothesis. In fact, it is possible that federal schools helped to improve the quality, first increasing the school competition, and second, forcing a more homogenous system. As a consequence of the national school competition, the market share of provincial schools fell quickly, and by 1930 only 59% of the total primary schools in the country were provincial. In 1978, under the military government, the advance of the federal government on the provincial jurisdiction was reverted, with the transfer of 6000 national schools to the provinces, what represented 25% of the total number of public school at that time, or 98% of the total public federal schools (the remaining federal schools were finally transferred in 1992, so currently all the primary and secondary schools are managed by the provincial governments). Some argue that the transfers were not done on the basis of increasing quality or accountability but rather to diminish the burden of these schools on the federal budget (Aguerrondo (1992)). The 1978 transfers (under the military government) were a drastic change, mandatory and without an increase of the fiscal revenue that the federal government transfered to the provincial government, what might have affected the quality of the schools. Secondary schools had developed at a slower pace. At the beginning of the XX, they were restricted to the national elite only. In 1914, for instance, only 3% of the population between 13 and 18 years old attended secondary school. The situation changed with the Peronist government (1946-1955), as it generalized access, but by 1960, the net enrollment rate was only 23% and increased slowly to 40% by 1970 (Wiñar (1974)) or 54% by 1991. By 1994, in a general reform, the first two years of the secondary education became mandatory, and now around 80% of the students in secondary level age actually attend school. 12 The secondary school curriculum in Argentina has always been biased to a humanistic formation. Historically, there have been some attempts to articulate secondary schools with labor market more by means of technical schools, but technical and agricultural schools never had an enrollment share larger than 28%. With the reform in the 90s, they were abolished, and with the 2006 reform they were reinstituted, what shows the typical Argentine cycle of reforms and counter-reforms. In international terms, as a consequence of the early promotion of its education, Argentina was able to reach fairly good coverage and years of schooling early in the century. By 1960, Argentina had, on average, 5 years of schooling for those over 25 years old compared to 2.1 in Italy and 3.4 in Spain, the countries where most of the local population comes, closer to the developed economies than the Latin American average. After 40 years, Argentina has now the same years of schooling as the Latin American average, and well below the average for Italy and Spain respectively, when in 1960 Argentina was 3 and 2.5 years above them. Participation of the Private Sector In the last century, the secondary and primary schools showed opposite trends in terms of private sector participation. In the secondary level, the enrollment share grew quickly at the beginning of the 1900s as a response to the demand for more education in a fast growing country, demand that the public sector was not covering. By 1965, 32% of the secondary school students were attending a private school. But since this peak, the private sector has been steadily losing share, as the government has increased the number of public schools, and at present the private sector share is around 25%. The recent national trend has two patterns: in the richest provinces the private sector participation has been increasing, but this has been overcompensated by the increase of the public sector share in the poorest provinces, mainly due to the increase in the net enrollment share (covered mostly by public schools). 13 In primary schools, the private school enrollment share, which was almost 20% at the end of the XIX century, fell to 7.3% by 1940, as the state increased the public school offer in its attempt to generalize this level of education. But since then we observe an increasing share of private schools, which is more marked in the richest provinces such as Buenos Aires. The development of the private school sector was facilitated by the Domingorena’s Law in 1955, which made easier for the state to subsidize private schools (particularly catholic schools). Nonetheless, the recent increase in private school share is more related with a perception of a deterioration of the quality of public education (the most notorious fact is the loss of school days per year due to teachers’ union strikes, which were very common in the 90s). Figure 1. Evolution of private sector enrollment share 0.35 Private Sector Enrollment Share 0.3 Secondary School 0.25 0.2 0.15 Primary School 0.1 0.05 0 1910 1920 1930 1940 1952 1955 1960 1965 1970 1975 1980 1985 1988 2000 2005 The problems Since the middle XX century, the economy has started a stop-and-go (no long-run) growth process; fiscal crises have become a recurrent problem, what has translated into lack of investment in the educational sector, and less competitive teachers’ wages. 14 Figure 2. Evolution of GDP per capita GDP per capita (1990 International Geary-Khamis dollars) 25,000 Australia 20,000 15,000 Italy 10,000 Argentina 5,000 02 99 20 96 19 93 19 90 19 87 19 84 19 81 19 78 19 75 19 72 19 69 19 66 19 63 19 60 19 57 19 54 19 51 19 48 19 45 19 42 19 39 19 36 19 33 19 30 19 27 19 24 19 21 19 18 19 15 19 12 19 09 19 06 19 03 19 19 19 00 0 Source: Madisson (2001) By 1950 the country was 14th in terms of the Human Development Index, a similar position than in 1900, but after 1950, the country has started to lose positions and at present is 36th. Australia, on the other hand, a country with similar factor endowments as Argentina at the beginning of the XX century, was able to hold its position among the top 5 countries according to this index. Table 1. Human Development Index Position Year 1900 1930 1950 1974 2004 Australia 4 9 4 7 3 Argentina 13 11 14 18 36 Notes: Index based on: life expectancy, literacy, school enrolment, access to health care, GDP and other indicators. Position among the top 50 countries. Source: Angus Madison (2001). UNDP Human Development Report 2005. Regularly the outcome of the problems between the government and the teachers’ union was strikes, which became more and more frequent in the 80s and 90s. The problems are still present; a clear piece of evidence is the murder of a teacher in a violent provincial strike this year. 15 The popular perception is that teaching as an occupation has lost social status, and today only those who cannot access other, more profitable, professions choose to be a teacher. In addition, the country has not made significant changes in the curricula or the way teachers are trained (still it is a three-year, non-university instruction). In addition, the system shows very high repetition rates and very high drop-out rates, what means that many students do not finish school at the corresponding age. This has been a historical problem in Argentina. For instance, for the cohort starting first grade by 1937, only 25% reached third grade on time, and only 19% reached sixth grade on time, what means that for each of the 30 students starting primary school, only three finished on time. The problem is less severe now, for each 100 students that start first grade, 54 finish the primary school on time; nevertheless, there is still a long way to go compared to international standards. In 2004, for instance, just 10% of the cohort starting the school that year repeated the first grade. The average repetition rate for the entire primary school is 6.5% per grade, and the average drop-out rate 1.8% per grade; in secondary school it is 8.8% and 16.9% per year respectively. According to the teachers, by fourth grade, 60% of the students still have serious reading difficulties. Regional disparity in terms of access to education and school indicators are high, and although the least developed provinces have been catching up with the national average in the last decade, the ranking of provinces has not been altered in 100 years. The ranking of provinces according to the illiteracy rate in the most recent Census is the same as the obtained in the 1869 or 1895 Censuses. The pattern of inequality of school indicators holds for other variables such as income level, infant mortality rates, poverty rates, and other indicators related to the quality of life, what shows a structural problem. II.2. Educational System Design Recently there have been some new laws to impulse the sector. The two most important ones are the Ley Federal de Educación (Federal Law of Education) (1993) and the Ley 16 de Educación Nacional (Naitonal Law of Education) (Law 26.206), sanctioned at the end of 2006. The Federal Law of Education, Law 24.195, tried to revise and reformulate the system. This Law was intended to serve as a flexible framework to define the national and jurisdictional responsibilities. The Federal Council of Education was created to provide the main guidelines, and the mandatory years of schooling were extended from 7 to 10.2 Before the reform, Argentina had a 7-year primary school and a 5-year secondary school. The system was changed to a new cycle called General Basic Education Level (EGB), which comprised the previous primary school plus the first two years of the secondary school, organized in three cycles of three years each, and the secondary school was reduced to three years (called Polimodal), eliminating technical schools. The mandatory schooling changed from the primary level (7 years) to the EGB (9 years) plus Initial Education (Kinder 5). The National Law of Education (2006) introduced some modifications to the previous law, reverting some reforms, although granting more importance to the Federal Council of Education. The new law defines the pre-school as a pedagogical unity since the child is 45 days old; consequently, child care institutions (“jardines maternales”) are also included in the national system. It also reverts the structure to a primary (comprising EBG 1 and 2) and secondary school (where the EGB 3 is added as a common cycle to all the orientations). The law revitalizes technical schools, emphasizing a more labor-market oriented education in the last three years of the secondary school. Some of the objectives are: to deepen the theoretical knowledge as a whole according to the different orientations (humanistic, social, and techno-scientific) and to develop important human abilities so that students may access the production sector, incorporating work as a pedagogical element. Therefore, Polimodal can be linked with the Technical Professional Stage (TPS), offering training in more specific fields and granting the diploma of 2 The “Consejo Federal de Educación” (Federal Council of Education) is an organism in charge of conducting the educational system composed by the Provincial Ministers of Education, the Minister of Education of the Ciudad Autónoma de Buenos Aires, and the National Minister of Education. The purpose of the Consejo is to establish the general principles of the educational policy for the whole country. 17 technician in the chosen specialty. The Common Basic Contents (CBC) were designed to help all students acquire a series of basic competencies, conceptualize different fields of knowledge and contribute to social and productive activities. In addition, the 2006 law extends the mandatory years of schooling to the entire secondary school, i.e., 13 years of mandatory schooling. The Structure of the Educational System Basic education comprises: • Pre-school level: For children from 3 to 5 years old; only Kinder 5 is compulsory. The purpose of this level is to stimulate maturity, social integration, and the bond between family and the educational institution. All the pre-school settlements are authorized and monitored by the jurisdictional educational authorities. • General Basic Education Level (EGB): Three cycles of three years each. Some of its objectives are “to achieve the acquisition and instrumental command of socially significant values: oral and written communication, language and math operations, natural sciences and ecology, exact sciences, technology and informatics, social sciences and national, Latin-American, and universal culture.” • Polimodal Level: three years (from 15 to 17/18 years old). I For all these levels, the school year begins in early March and ends in late November, and, according to the Federal and provincial law, the government must guarantee of 180 days of instruction. A day of instruction comprises at least 4 hours, where most of public schools have 20 hours a week for the whole curriculum, whereas private schools (particularly in large cities) are increasingly offering full-day schooling (even though many of these private schools are not bilingual). There are just very few full-day public schools. In this sense, the increasing labor force participation of women might have also worked in favor of private schools (in addition to the strikes in public schools). 18 Figure 3. Basic Education System in Argentina In addition to the Basic Education, the system includes: • Tertiary Level: it includes non-university and university studies that offer professional and academic education at undergraduate level. The academic autonomy and economic autarchy of universities is stated. • Graduate Level: it is under the responsibility of universities and academic, scientific, and professional institutions of renowned level. The universities are national, autarchic and autonomous institutions, while National Government is basically responsible for the financing. • Special Regimes: they mainly comprise special education, adult education, artistic education, and non-formal education (the reform has explicitly incorporated these regimes into the system and recognized their importance.) In terms of organization and governance, Argentina has 24 jurisdictions, each responsible for education services. In 1993, functions were redefined for the National Ministry of Education, Science, and Technology and the Federal Council of Culture and Education 19 (in which the 24 jurisdictions take part). Institutional autonomy has been increased, but provincial and national teams have a complementary function in the system. The decentralization did not reach municipalities (as in Chile), what still leaves a somewhat centralized system. In the current system, at the national level, the Ministry of Education is responsible for assisting the President in all matters connected to it, defining goals and schools’ course syllabi, assigning budgets for programs and their management, setting procedures for projects, establishing institutional and methodological structures for schools and their relationship with provincial governments, monitoring compliance with rules, and visiting schools. In view of this, the main functions of the Ministry of Education at national level are the coordination and monitoring of the educational system, the orientation of the different jurisdictions, and the formulation of objectives and area policies. Jurisdictions are in charge of designing, financing, and executing said educational policy and of hiring the Initial Level (EGB and Polimodal) teachers, who may be employed either part time or full time (multiple positions is not uncommon). The Constitution demands that the provinces ensure “primary education;” consequently, all of them have sanctioned constitutional norms according to such demand while each jurisdiction has elaborated laws on education following the national norms, so they may promote education at any level within their territories. Similarly, the Constitution does not forbid cities from organizing and spreading education at any level with the purpose of encouraging general knowledge. This is the third action level of the official education3. Regarding public education with private management, the National Constitution supports this activity in the Preamble and in the Chapter on declaration, rights, and guarantees; consequently, private and official education are regulated by the same norms. In terms of class size and classroom organization, the structure varies considerably from place to place across the country. Class size ranges from 15 to 40 students (an average of 3 The education at city level has not a relevant development. 20 25), with one exclusive teacher per grade. Students frequently are seated facing the blackboard, and teacher-student communication predominates over student-student interactions. Schools do not have reading specialists, except for a few private schools. No second language is taught in most public schools, in contrast to private ones. Nevertheless, a few children whose mother tongue is not Spanish but an aboriginal language receive bilingual education. Teacher Formation The teaching degree in Argentina is non-university and emphasizes the pedagogical rather than the content aspects. Before 1969, teachers were trained in special secondary schools (Normal Schools created in 1870). In addition, the provinces founded Institutions for Secondary Schools Teachers’ Formation at tertiary level (both public and private). Since the mid-1980s, these institutions have strived to achieve greater heterogeneity and complexity with respect to diversity of dependency, diplomas, and curricular planning. Within this context and the regulatory framework of the Federal Law of Education, teachers’ development is centered on the following: • Evaluation of the adequacy of training programs regarding higher quality, coverage, and relevance to requirements of the 10 years of compulsory education and the implementation of the new structure of the system. • Stipulation of a framework articulating the federal policies of continual development for teachers • Updating of professional education through the Common Basic Contents published in 1995 • Creation of the Federal Network of Continual Teachers’ Training. In addition to this effort to increase the teaching force, about sixty percent of the teaching force at primary level does not hold a higher education title. This has been a side effect of 21 the extension of compulsory education from seven to ten years, since highly qualified teachers were allocated to higher levels of education. Curricula and evaluation National reading policy states that all students should be able to read (and write) independently by the end of grade 3, but the actual policy is that children should be able to “sound out” texts much earlier (by the end of first grade). Although the reading curriculum is set at national level, there is a large heterogeneity in the “real curriculum” throughout the country. Reading instruction formally starts in the first grade of EGB1, but schools are starting earlier in Kinder 5, where basic writing takes place at this early stage as a collaborative enterprise between teacher and students. The Argentine curriculum does not dissociate reading from writing. Language as a subject incorporates both reading and writing instruction. This instruction comprises oral language, written language (reading and writing), language awareness, literary discourse, procedures involved in comprehension and production of texts, and attitudes toward uses of language. Most of the instructional time in the first three years is devoted to reading and writing, and only a small fraction is used for math. The importance of math and science increases as students evolve to more abstract reasoning. In terms of materials, teachers use books (manuales), but most classes (and even schools) do not have a bookshelf or reading corner to be used by students. The only book available for each student is the graded reader or his own textbook. Achievement is assessed by teachers through teacher-made tests and teachers’ observations. These include oral reading and written answers to questions about what has been read. Since 1993, a reading comprehension test (Operativo Nacional de Evaluación, ONE) for third, sixth, ninth, and twelfth graders has been administered to nationally representative samples of students (except for 2000 when it covered the entire population (Census Type). Commercial standardized tests are not used regularly. 22 II.3. Argentine Educational System in Numbers Main characteristics According to the most recent publication of educational statistics (2005), there are in Argentina 12.2 millions of students, what represents approximately 30% of the total population. Of this total, 81.3% are in the Basic Level (up to secondary level), what is the object of study in this paper. 98% of the students in the age range of primary level (EGB 1 and 2) are enrolled in school; whereas in EGB3 and Polimodal, this ratio is 78.4% and 53.6%, respectively. The literacy rate is 97%, above the average for Latin America (89.9%) and upper-middle income (UMI) countries (94.3%). The school life expectancy (or years of schooling) is 15.4 years, again over the average for Latin-America and UMI countries (13.1 and 13 years respectively). Between 1991 and 2007, the number of students in tertiary education level has more than doubled, in primary level the coverage has been very constant, and there has been an important increase in secondary education, particularly in the 90s. From the official information (see Annex A) we conclude that: a) The gross enrollment ratio in secondary level is substantially higher (104.7% and 73.7% respectively), what shows that a large proportion of individuals are finishing the secondary school older than expected (this is in part explained by the high repetition rate and high school drop-out ratio at secondary level). b) Argentina has reached a relatively high enrollment ratio earlier than other countries in the region. For instance, in 1970 Argentina had a gross enrollment ratio in secondary school of 44%, level that Brazil, for instance, only reached by the middle 90s. c) The goal of universal access of primary education (EGB 1 and 2) has been already reached (Argentina shows high net enrollment ratios since the late 70s, being the first country in the region achieving this goal). 23 d) In secondary education (EGB 3 and Polimodal) the country still has problems to reach universal access, at least in terms of net enrollment ratios(many finish this level as adult education). e) The deep economic crisis suffered in 2001/2002 seems to have had an impact on enrollment ratios. For instance, the gross enrollment ratio in primary school fell from 117.8% in 2000 to 112.7%, and in secondary, from 96.7 to 86. But the effect on the net enrollment ratio was much smaller (null in secondary and a fall of 0.5 percentage points in primary), what suggests that either adult education suffered the most or that the catchup possibilities for adults have been exhausted. d) There are significant differences across regions, with a strong correlation between the indexes and economic development.4 e) The common feature at all educational levels and regions is the difference between the gross and net schooling. In this sense, the Argentine educational system has the ability to incorporate most of the population that potentially demands education but shows a significant fault in the ability to encourage students to finish school. f) The spending per student (as % of per capita GDP) significantly increased in the 90s for all the levels, but it was affected by the economic crisis, and the current levels are still the 2000 levels, particularly for tertiary level (which represents now 11.7 compared to the peak reached in 1995 of 21.5). A characteristic of the Argentine system is that establishments use more teachers compared to OECD countries, but a high proportion of these teachers are not actually in front of the class. It is estimated that approximately 20 to 30% of the teachers are working in administrative tasks or supporting the educational process from outside the classroom. The ratio of students per teacher in primary school is as low as 12.4 in the Southern provinces. Across provinces, this ratio shows a high dispersion, indicating a high degree 4 The regions are: a) Center: Buenos Aires, Ciudad de Buenos Aires, Córdoba, Entre Ríos, La Pampa, and Santa Fe; b) Cuyo: Mendoza, San Juan and San Luis; c) NEA: Chaco, Corrientes, Formosa, and Misiones; d) NOA: Catamarca, Jujuy, La Rioja, Salta, Santiago del Estero, and Tucumán; e) South: Chubut, Neuquén, Río Negro, Santa Cruz, and Tierra del Fuego. 24 of discretionarily across provinces. Sometimes, the ratio of students per teacher is used to proxy the quality of education (under the assumption that a lower ratio is better), but in the case of Argentina, the ratio should be interpreted as a sign of inefficiency. Achievement in Primary and Secondary Education As a proxy of achievement, we use the following indicators: • Effective Promotion Rate: share of students that pass and are enrolled in the next corresponding grade • Effective Repetition Rate: share of students that are enrolled in the same grade again. • Drop-out Rate • Scores in National-wide Standardized Tests (ONE tests) The main results are: • Indicators are in general correlated with the regional level of development; the more developed the regions, the better the indicators are. An exception is the effective promotion and repetition rate in the Center, which is the richest. • The drop-out rate is particularly high in EGB3 and Polimodal. In EGB, the fall in enrollment happens mainly at the end of the EGB2 (eight grade) and the beginning of EBG3 (9th grade). • Polimodal has a much higher drop-out rate, particularly in the first year. Regionally, the Northern provinces show the highest drop-out rates. The next table shows the average score of the tests administrated in 2000 and 2003 (Language and Mathematics Tests) for the country and regions. The main results are: • On average, students respond less than 70% of the questions correctly, which is supposed to be the break even point to pass an exam. The only exception is the Language test in 3rd grade (EGB1) for urban private schools in 2000. 25 • The performance is worse for higher levels of education in both tests, what shows that students have increasing problems to reach the increasing standard (what might be interpreted as problems to develop complex reasoning and logic). • On average, the rate of correct answers is lower in 2003 (a year of economic crisis) • Private schools obtain better scores systematically (for all the regions and tests). • The provinces with the lowest scores are the Northern provinces, which are the poorest and with poorest overall educational indicators (such as enrollment rates and average years of schooling) Table 2. Proportion of right answers, ONE test, Argentina Primary School 3rd grade (EGB1) 6th grade (EGB2) Language Mathematic Language Mathematic 2003 2000 2003 2000 2003 2000 2003 2000 Total Urban Public Schools Urban Private Schools Rural Schools Regions Center Cuyo NEA NOA South 59.4 58.5 69.3 57.6 61.9 59.6 71.6 59.0 59.5 58.7 68.5 58.2 59.5 58.0 64.9 58.8 54.1 51.5 64.0 51.4 61.6 59.0 72.1 54.8 56.4 54.1 64.9 54.0 57.9 55.5 67.5 50.8 60.7 61.0 60.1 56.0 62.0 62.6 63.3 58.6 60.0 63.8 61.0 60.5 60.0 56.0 63.4 59.9 59.8 57.0 59.7 60.8 54.6 55.6 49.8 52.9 57.4 62.9 62.2 56.4 58.6 62.4 56.6 60.4 52.7 54.7 58.9 58.8 59.2 52.8 55.5 59.3 Secondary School 9th grade (EGB3) 12th grade (last year of Polimodal) Language Mathematic Language Mathematic 2003 2000 2003 2000 2003 2000 2003 2000 Total Urban Public Schools Urban Private Schools Regions Center Cuyo NEA NOA South 52.7 48.8 63.8 51.0 47.1 62.3 53.4 50.8 60.8 53.6 50.4 62.8 57.2 54.1 63.1 59.1 54.9 67.2 56.3 52.5 63.6 61.3 57.4 68.7 53.8 52.9 46.1 50.9 56.0 53.2 49.5 43.8 45.3 51.5 54.4 53.1 47.5 52.0 55.7 56.0 52.3 44.5 48.6 53.3 59.3 53.5 49.5 52.2 57.6 61.8 57.0 50.3 52.1 58.0 58.9 53.3 45.7 50.4 56.4 64.2 58.9 50.8 54.2 60.0 26 III. Data and Methodology III.1. Data In this study we will use different databases, which we briefly describe here. To analyze Argentina in particular we will use the following local surveys and national evaluations: • EPH (Encuesta Permanente de Hogares): this is a household survey representative at sub-regional level for 24 urban areas within the country. For the larger urban area, which corresponds to the city of Buenos Aires and the sub-urban areas (called Great Buenos Aires or GBA area) where approximately 37% of the total population lives, the survey started in 1974. For the rest of the regions the survey started in 1996. The main objective of the survey is to characterize the labor market and its evolution. • Censo Nacional de Maestros y Establecimientos Educativos. This is a national census collecting information about schools and teachers. The most recent Census was in 2004 (the previous ones were in 1994, 1980 and 1970). • Anuarios de Estadísticas Educativas: A yearly report done by the Ministry of Education that contains statistics about the national system. • ONE Test (Operativo Nacional de Evaluación). ONE is a test administrated by the “Programa de Promoción y Evaluación de la Calidad Educativa” of the Ministry of Education of Argentina every year at national level. ONE test has been administrated since 1993, and the test is complemented with a student, teacher, and school director/principal survey that permits to link students’ achievements with students and families’ characteristics as well as schools and teachers’ characteristics. The test had been increasing the coverage since 1993 to reach a coverage similar to the Census in the 2000 version. After the 2000 test, the test was administrated only in 2003. The 2003 version was administrated only to a relatively small random sample of students, 27 who by design are only representative of provincial level but not of the school or city level. The Ministry of Education only made public the average results at region level, and the datasets are not publicly available. For these reasons we will focus mainly on the year 2000, when students from 6th grade of Educación General Básica (EGB) level (primary school) and the last year of Polimodal (5th year secondary level) were tested. Using the 2000 test, in addition to having the advantage of covering all the students in the country, is also very close in time to the two international tests in which Argentina participated and that we will analyze in this study. These tests are: • PISA tests (to which Argentina was included in PISA 2000 and the recently released PISA 2006) • PIRLS test (Argentina participated in the 2001 round) With PISA and PIRLS tests we will make a comparative analysis of the situation of Argentina and of other countries included in these tests.5 Since the tests are based on a (relatively small) random sample, they are representative of school level (for those schools included in the tests) and national level, but not of regional level or school type. PISA 2000 is the most recent test in which Argentina participated. It provides detailed information on students’ family background (including family structure, the parents’ education level and occupation)m and schools’ functioning conditions, so we can associate students and schools’ characteristics with students’ performance. In particular, it is possible to decompose, to some extent, test results into students, schools, and country’s characteristics, with potential policy implications. PISA assesses the knowledge of 15-year-old youth, but the emphasis is not on the curriculum content; instead it focuses on the skills that students will need in their everyday lives (see OECD 2001). 5 We will not use TIMSS, in which Argentina participated only in 1995, the LLECE test, by UNESCO/OREALC, which included Argentina in 1997, or the Laboratory test (1997) as PISA and PIRLS are two more up-to-dated sources. 28 The focus of PISA in 2000 was on students’ reading skills, with mathematics and science skills treated as minor domains (these two latter tests were administrated only to a minor sub-sample of students). For this reason, our analysis will be based on the reading test only. One limitation with PISA is that the data set is cross-sectional (i.e. it does not include information on the students’ previous performance); therefore, we cannot apply a panel data type of analysis, which is useful when students’ unobservable characteristics affect the achievement, and we cannot identify the value added by the school or teacher. An additional limitation of PISA 2000 is that it does not include any information at classroom level: we do not know the teachers’ characteristics or which class the student is attending (school and grade). PIRLS assesses the literacy skills of students in their fourth grade and includes a survey to students, parents, teachers, and school administrators, what provides a very rich set of controls (see Mullis et al (2003)). As well as ONE test, PIRLS focuses on curricula contents, which is directly associated with what the student should have learned in that grade. In terms of international comparison, a potential inconvenient with PISA and PIRLS tests is that only a few Latin American or developing countries are included, what limits the comparison of Argentina within the region and countries with similar characteristics. III.2. Methodology The achievement of a student in a standardized test is a function of: i. the student’s ability (b), ii. other student’scharacteristics (s), such as family background, iii. class’ characteristics (c), such as “quality” of the peers and teacher’s characteristics, 29 iv. school’s characteristics (sc), which are characteristics common to all the classes in that school v. regional characteristics (r), which are important in Argentina since education has been decentralized at provincial level, existing some regional variation in the main characteristics. vi. educational system characteristics, which usually varies at country level For the student i, in class c, at school s, in region j the test score is a function of: [1] TSi ,c ,s , j = f (b, s, c, sc, r ) + ε where ε is a random variable affecting performance. f() might be interpreted as a production function (see Lazear (2001)), but it has several particular characteristics that make the empirical analysis quite different from standard production function estimations. Not only are there endogeneity issues for inputs (as in any production function), but there are also externalities in production (peer-group effects), sorting of inputs (not only does the school select inputs, but also inputs select schools), and input heterogeneity, which in part is unobservable to the econometrician (and affects the sorting).6 This generates a very complicated framework for an econometrician, with double-selection bias and endogeneity problems biasing the results of a simple estimation of the production function [1]. In particular, student and teacher’s ability is not observable for the econometrician,7 and the distribution of ability among schools (and perhaps classes) is not random; therefore, selection bias problems can easily emerge when trying to factor decompose test results.8 This is the main difficulty in trying to analyze the factors behind the quality of education: the contamination of the simple OLS results by endogeneity and selection biases.9 10 6 The evidence shows that not only do students select schools but also teachers select schools based on other school inputs (see Hanushek, Kain and Rivkin (2004)). 7 There are a few approaches to control the unobservable students’ ability, but given the type of data we have available in Argentina, most of these approaches are not really feasible. For instance, we do not have IQ tests, none of the tests taken in Argentina follows the student across time (i.e. they are just repeated cross-section tests and not longitudinal data), and we do not have students’ characteristics at birth (although the correlation between ability and birth characteristics has not a strong empirical support). 8 In fact, Hechman and Vytlacil (2001) argue that it is not possible to separate the effects of ability and schooling. 9 An early description of the empirical issues in the estimation of educational production functions can be found in Hanushek (1979), see also Filmer and Pritchett (1999). 30 In the economics literature, the empirical evidence on school inputs and achievement is based mainly on three types of econometric exercises: a) naive OLS regressions (omitting all the technical problems we have just mentioned), b) more sophisticated econometric models that try to correct biases,11 or c) the identification of an effect of a particular input based on a natural or controlled experiment.12 On the other hand, much of the literature on education has developed and refined the use of hierarchical lineal models (HLM) or multilevel models to factor decompose test score (see Willms and Raudenbush (1989) or Willms (2006)). HLM models –also known as random coefficient models (Rosenberg, 1973), multilevel linear models (Mason et. al. 1984), and mixed linear models (Goldstein, 1986)- exploit the hierarchical structure of the test scores, since the achievement depends on individual’s, the class’, and the school’s characteristics as well as on any other cluster level (such as the characteristics of the city, province or country); these models also try to decompose the residual variance in different components. Within the same class (school, or cluster), the measurements from individuals are not independent; students from the same class (or school) might have a more similar achievement than students from different classes (or schools). The violation of independence is one of the main reasons for not using traditional regression models at student level. Note that aggregating at school level we avoid violating the independence assumption at class level (due to the possible non-random assignment of student into classes), but still we have the nonindependence at school level, which can be solved aggregating at city or province level. Although it is still true that there might be reasons even at city level for non-random assignment, such as Tiebout sorting, self-selection problems are drastically reduced. But 10 Controlling for the endogeneity of school inputs with cross-sectional test scores is still a pending issue in the literature of the economics of education. The literature of industrial organization has been able to give an answer to the endogeneity of inputs when estimating production functions, which relies on structural approaches (see Olley and Pakes, or Levinsohn and Petrin), but in the economics of education, we do not still have strong results about the structural process behind the production process to develop structural estimations. 11 An early work in this area is the two-way nested error component model of Montmarquette and Mahseredjian (1989) to estimate the effect of school characteristics on educational achievement. 12 Some examples of these kinds of papers are: Cullen, Brain, and Levitt (2006), who analyze students’ achievement based on an experiment in Chicago, where certain types of students were able to choose school, or Altonji and Dunn (1996), who use siblings’ information to estimate the effect of school quality on wages, or Angrist and Lavy (1999), who identify the effect of class size on achievement using a Maimonide kind of rule to separate classes. 31 by aggregating we lose information at individual levels; in addition, we might create problems of aggregation bias and lose precision. For these reasons, in most of our econometric exercises we will follow the HLM approach, based on finding the optimal balance of ordinary least square (OLS) and aggregation approaches, which we briefly describe here.13 HLM Model For simplicity, consider only two levels. Level-1 data are the individual student’s factors while Level-2 refers to group characteristics (such as classroom or school).14 To keep the exposition simple, suppose that at individual level there is just one covariate X (e.g. sex). Denote i as the ith student (level-1) and j as the jth class (level-2). The Level-1 model is: Yij = β 0 j + β 1 j X ij + eij where Yij is the test score of the student i that attends school j; e is normally distributed with mean 0 and variance σ2. The Level-2 model (without covariates) is: β 0 j = γ 00 + u oj β1 j = γ 11 + u1 j u0j and u1j are assumed to followed a bivariate normal distribution with mean 0, variances τ00; τ11 respectively, and covariance τ01. When combining level 2 and 1 we obtained the following reduced form model: Yij = γ 00 + γ 10 X ij + u oj + u1 j X ij + eij The random error now has three components: the random effect of the jth class on the mean u0j, the random effect of jth class on the slope interacting with the student characteristic, and the level 1 error. 13 14 For a more advanced treatment, see Raudenbush and Bryk. This exposition is based on Qu (1997). 32 To estimate the Level-1 coefficients we will use the “shrinkage estimator”. For the oneway ANOVA case, we have the two-level model: Y j = β 0 j + e j , e j ~ N (0,V j ) β 0 j = γ 00 + u0 j , u0 j ~ N (0,τ 00 ) This model suggests that we could estimate β 0 j by using Y j or γˆ00 . A Bayes estimator, called β *0 j is an “optimal" weighted combination of Y j or γˆ00 : β *0 j = λ j Y j + (1 − λ j )γˆ00 where the optimal weight is given by: λj = = τ 00 τ 00 + V j parameter var parameter var + error var If the parameter variance τ 00 is large relative to the error variance Vj, then the weight λ j is large, what means that we will put less weight to the parameter estimator τ 00 and more weight to the group mean. In general, if we have the two-level model with covariates at level 2 we have: Y j = X j β j + R j , R j ~ N (0,V j ) β j = W jγ + U j ,U j ~ N (0, T ) Then the OLS regression estimator for the first equation is: βˆ j = (X 'j X j ) X 'jY j −1 and the second estimator based on group characteristics captured in Wj is: β~j = W jγˆ where γˆ is estimated by generalized least square (GLS): 33 γˆ = ∑ (W j' Δ−j1W j j ) ∑ (W Δ −1 ' j −1 j βˆ j ) j where: Δ j = Tj +Vj The optimal combination of these two estimators is β *j = Λ j βˆ j + (1 − λ j ) β~j where Λ j = T (T + V j ) −1 Since β *j pulls βˆ j towards β~j , the estimator is called a shrinkage estimator. In general, the more reliable βˆ j is as an estimate of β j (i.e., T is small), the more weight it will have and the more β *j will look as βˆ j . Oaxaca-Blinder Decomposition We complement the HLM analysis with Oaxaca-Blinder decompositions, where we separate the score gap between Argentina and the benchmark country as: GAPj , ARG = E (Y j | X j ) − E (YARG | X ARG ) ∀ j = 1,..., J ( ) ( GAPj , ARG = ∑ βˆ ARG ,k ( X j ,k − X ARG ,k ) + ∑ X ARG , k βˆ j ,k − βˆ ARG ,k + ∑ ( X j ,k − X ARG ,k ) βˆ j ,k − βˆ ARG ,k K K k =1 k =1 K k =1 ) where the subscript j corresponds to the benchmark country selected, and the k the regresors (k=1 is the intercept). We defined the score gap as the difference between the predicted OLS score for the benchmark country and the predicted OLS score for Argentina (first equation). Therefore the gap is positive if the benchmark country performs better than Argentina, and negative if performs worse. 34 The score gap (second equation) is decomposed in three effects: i) The endowment (or characteristic) effect (first term) is the difference in scores due to differences in the average for each regresors, weighted by the Argentine slope. It represents the part of the score gap that can be explained just because of different average characteristics between both countries. ii) The returns effect (second term) represents the proportion of the score gap that can be explained by differences in the slopes between both countries (given the average Argentinean characteristics) iii) The interaction effect (third term) is the residual part of the decomposition. Usually, it represents a small value and it captures the leverage produced by both of the previous effects happening simultaneously. We complement the Oaxaca-Blinder decomposition with the Juhn Murphy Pierce decomposition, which is a decomposition for the entire distribution and not only the mean. 35 IV. International Benchmarking IV.1. Structure and Coverage As already mentioned, Argentina has reached high levels of literacy rate and coverage earlier than other Latin-American countries and even some developed countries. Its evolution since 1950 has been favorable compared to Latin America, but not so much compared to fast growing countries. In this section we compare Argentina with two groups of countries: Latin American countries and upper-middle income (UMI) countries (as Argentina). Most of the Tables and Figures are shown in Annex B, here we discuss the main results. Argentina, compared to both groups of countries, is a top performer in many indicators. The literacy rate (97%) is well above the average for Latin America (89.9%) and UMI countries (94.3%). The school life expectancy (or years of schooling) is 15.4 years, again over the average for Latin-America and UMI countries (13.1 and 13 years respectively). It is also a top performer in terms of net enrollment ratio in primary school and gross enrollment ratio at tertiary level. For secondary level, it is a top performer in LatinAmerica, but when compared to UMI, it is close to the average, what shows that the country has some problems in this level of education. The high enrollment in tertiary education but with lower (net and gross) enrollment in secondary schools means that an important group of students do not have access to higher education simply because they do not finish high school, what implies an unequal situation. In the last years there have been policy debates about the reasons for the high drop-out rates in secondary education, the usual suspects are poor quality in the previous levels for some students and the early entrance to the labor force. As shown before, students in Argentina have a significant decreasing performance in the national tests as they advance, what, given the high dropout rate, means that the problem of quality could be even bigger than what the tests suggest. Related with this finding is the unusually high ratio of repeaters to total 36 enrollment in secondary school (11.5%), which is the highest in Latin-America and also high when compared to UMI countries. This means that Argentina is able to reach a relatively high school life expectancy but very inefficiently, with a high proportion of students repeating or finishing school later than expected. In terms of students per teachers, Argentina has a very low ratio (17.3) for primary level and close to average at secondary level, but as mentioned before, this should not be taken as an indicator of quality, because between 20% and 30% of the primary level teachers are doing administrative tasks rather than teaching. The high proportion of repeaters in primary school means that Argentina is one of the worst performers in terms of students’ reaching grade 5 among the UMI countries, where only 84.3% reach that level on time (only Gabon has a worst performance). Table 3. Argentina compared to LATAM and Upper-Middle Income countries 2004 indicador Adult literacy rate (%) Duration of compulsory schooling Duration of primary education Duration of secondary education Girls as % of total enrolled, primary Girls as % of total enrolled, secondary GNI Per capita Gross enrollment ratio (%), primary Gross enrollment ratio (%), secondary Gross enrollment ratio (%), tertiary Net enrollment ratio (%), primary Net enrollment ratio (%), secondary Private enrollments as % of total, primary Private enrollments as % of total, secondary Progression to secondary school (%) Public expenditures on education, as % of GDP Public expenditures per student (% of p. c. GDP), primary Public expenditures per student (% of p. c. GDP), secondary Public expenditures per student (% of p. c. GDP), tertiary Pupils reaching grade 5 (% of cohort) Ratio of pupils to teachers, primary Ratio of pupils to teachers, secondary Repeaters as % of total enrolled, primary Repeaters as % of total enrolled, secondary School life expectancy (years) Argentina 97.2 10 6 6 49 50.9 3,580.0 112.2 86.4 63.9 99 79.1 20.6 27 92.8 3.5 10.9 14.3 13.1 84.3 17.3 17.3 6.4 11.5 15.4 Latin America 88.9 8.8 5.8 5.7 48.4 50.8 2915.0 112.2 77.0 32.0 93.3 60.8 16.4 25.8 89.9 3.7 11.0 11.4 25.1 82.9 25.2 19.9 6.9 5.6 12.7 Upper-middle Income 91.7 9.0 5.7 6.3 48.6 50.3 7177.3 105.0 89.2 38.2 92.5 79.6 14.3 15.0 93.0 4.7 15.5 20.0 33.0 93.7 19.2 14.6 5.9 5.8 13.6 Source: World Bank 37 In public spending per student, Argentina is in the average of the region and well below the average of the UMI countries, whereas private sector spending in Argentina is slightly above the mean. The share of the private sector in the total enrollment has been slightly increasing at country level in the last 30 years; a trend that is observed in most of the countries of the region. For instance, the share of private schools on total primary and secondary students increased from 17% in 1974 to 22% in 1988 and 25% in 2005. There are although strong regional differences, whereas some provinces such as Mendoza still rely mainly on the public provision, in other regions such as the Great Buenos Aires area or the City of Buenos Aires, the private sector share on total enrollment has increased more, reaching 34% and 43% respectively for primary and secondary education in 2005 (the highest ratios for all the regions). It is interesting to note that Argentina is among the top performers in terms of literacy rate and tertiary education enrolment in both the region and the group of upper middle income countries, what shows that the country has a relatively mature system, or in other words, it has developed earlier in terms of education coverage. Argentina had at the beginning of the 80s a gross enrolment rate of 70% in secondary school, well above other Latin-American countries (except for Uruguay) and also among upper-middle income countries. This ratio has increased since then by 23 percentage points (reaching 86% in 2005). In the same period, Costa Rica, increased from a low gross enrollment ratio of just 40.2% to 79.2% (an increase of 197%), and Brazil from 35.4% to 105.7%. The fact that Argentina has reached high coverage ratios earlier means that there are not strong “compositional effects”. In primary school, for instance, Argentina had already reached almost full coverage in the late 70s. This shows that universalizing the access is not an issue in Argentina, except for the secondary level, where the problem in fact is high dropout rates after the first years. If we compare Argentina with similar income level countries, similar culture, or a higher performance in terms of quality, we find that the most striking difference in Argentina is the repetition rate, which in primary school is 6%, well above the other countries. 38 Table 4. Argentina and selected comparators, 2004 Argentina Chile Czech Republic Poland Hungary Spain Italy France Finland Population ages 5-14 Population Growth GDP per capita PPP Repeaters primary School (%) Survival rate to grade 5 (% of cohort) 18.6 19.0 12.4 14.8 12.1 10.5 9.9 12.9 12.5 1.1 1.2 12.147 9.188 15.222 10.548 5.9 2.0 1.2 0.8 2.1 2.4 0.4 4.2 0.5 93.1 99.2 96.6 99.3 N.A. 100 96.5 98 99.4 -0.09 -0.53 -0.26 0.84 0.05 0.3 0.21 12.263 22.313 25.302 25.656 25.912 Source: World Bank, Edstats, IMF IV.2. Performance in International Tests Argentina has participated in a few international tests. Table 5 shows the position that Argentina obtained in the Language test for LAB (1997), PISA (2000), PIRLS (2001) and PISA (2006). Laboratory covered 11 Latin American countries, and the test was administrated for a sample of 3rd and 4th grade students. Argentina ranked second in 3rd grade, after Cuba, and third in 4th grade, after Cuba and Chile, what shows a relatively good performance compared to other Latin American countries; this result is consistent with the better aggregate indicators for years of schooling and enrollment. Table 5. Performance of Argentina in International Tests (Language) Ranking Argentina Total Sample LATAM sub-sample LAB 1997 3rd LAB 1997 4th PISA 2000 PIRLS 2001 PISA 2006 2 / 11 2 / 11 3 / 11 3 / 11 34 / 39 2/4 31 / 35 2/2 51/57 4/6 If we analyze the entire sample of countries for PISA and PIRLS, the picture is very different. In PISA 2000 (literacy) Argentina finished 34 out of 39 countries and in PISA 2006 (Science) finished 51 out of 57 countries. Something similar is shown by PIRLS, Argentina is 31 out of 35 countries in Language. 39 These tests include a larger set of countries, with a high participation of developed countries. If we restrict the comparison to Latin American countries, Argentina finished second in PISA right after Mexico and above Brazil and Peru, and second in PIRLS right after Colombia. But Argentina has not improved over time. Ranking the Latin American countries that participated in LAB 1997 and PISA 2006, Argentina lost one position in the ranking, whereas Chile and Mexico show a significant improvement. Table 6. Evolution of Argentina compared to other Latin American countries 1 2 3 4 5 Lab 1997 (Language) Chile 286 Argentina 282 Brazil 277 Colombia 265 Mexico 252 PISA 2006 (Science) Chile Mexico Argentina Brazil Colombia 438,2 409,7 391,2 390,3 388,0 To have a more homogenous set of comparators, we classify the countries that participated in PISA 2000 according to the World Bank classification (in terms of 2000 GNI per capita, Atlas Method). Of the 39 countries we have: 25 high income, 6 upper-middle income, 7 lower middle income and just 1 low income country. Comparing Argentina with non-high income countries, we found that it ranks fairly bad, 9 out of 14 countries in Language, 8 out of 14 in Math, and 10 out of 14 in Science. Argentina was the richest country in this set; the average score in PISA is well below the expected score according to its developing level (see Figure 4). In fact Argentina, Mexico, Peru and Brazil, the four Latin-American countries participating in the Language test of PISA-2000 show a similar underperforming pattern, but Argentina is the country that is more distant from the expected level (according to the linear cross-country trend). Eastern European countries are the top performers in this group. 40 Figure 4. GNI per capita and performance in PISA 550 500 Mean Score in Language, PISA 2000 Czech Republic Hungary Poland Russian Federation Latvia 450 Bulgaria Thailand Mexico Argentina 400 Brazil Macedonia, FYR Indonesia 350 Albania Peru 300 - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 GNI per capita (US$), Atlas Method Unfortunately, there are not large enough datasets covering very different developing countries to understand better where Argentina (and Latin America) stands in the scope of educational achievement. To overcome this limitation, we make a very strong assumption and construct a dataset combining different international tests (basically we choose a pivotal country which is in two different test, A and B, and assign a score for countries in B which is not in the sample A following a simple proportional rule, using PISA as our basis). With this approach we can expand the sample to 58 countries, Argentina ranking 42. The next figure plots the performance for this extended sample and the income level. The results are: • There is a positive correlation between development level (GNP per capita) and average test performance (the coefficient of correlation between GNI per capita and average test score is 66.8%.) with a relative small set of countries (mainly from Eastern Europe) somewhat above this relationship (i.e., obtaining on average 41 similar scores as developed countries even though they are upper-middle income countries). • Argentina performs relatively well for Latin American standards, but Latin America as a region underperforms, most of the countries with the lowest scores given their income level belong to this region. Other developing countries, particularly from Eastern Europe, have a much better performance with similar income level. Figure 5. GNI per capita and performance in international tests 550 Finland Canada Germany Australia Ireland Netherlands Hong Kong UK Singapore Belgium Iceland Austria France Denmark Sweden Italy Lithuania New Zealand Korea Slovak Republic Romania 500 Slovenia Czech Republic Hungary Poland Moldova Aveage Test Result Russian Federation Latvia 450 Cyprus Spain Iran U.S.A Switzerland Norway Greece Portugal Israel Turkey Bulgaria Thailand Japan Mexico Argentina Chile Brazil Bolivia Paraguay Colom. 400 Kuwait Macedonia, FYR Dominican Republic Indonesia Ven. Honduras 350 Albania Morocco Peru Belize 300 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 GNI per capita (Atlas Method) If we compare the educational achievement according to school life expectancy (years of schooling) we also find a similar picture: Argentina obtains 415 points in the score when, according to the cross country relationship between both variables, Argentina should have a score of 483 points (given its school life expectancy), a score similar to countries such as Hungary (481) or Poland (480), and not far away from Italy (488), The Czech Republic (492) or Spain (493). 42 Figure 6. School life expectancy and performance in international tests 600 y = 23.973x + 173.13 2 R = 0.3832 550 Finland Lithuania Germany Netherlands New Zealand Korea Japan UKIreland Switzerland Slovakia Belgium Romania Norway France U.S.AAustria Iceland Slovenia Sweden SpainDenmark Czech Rep. Cyprus Italy Hungary Greece Poland Portugal 500 Average score Moldova Latvia Israel 450 Bulgaria Mexico Argentina Iran 400 Chile Colombia Kuwait Bolivia Paraguay Indonesia Dom. Rep. Venezuela 350 Australia Brazil Albania Morocco Peru Belize 300 250 7 9 11 13 15 17 Expected years of schooling We also compare educational achievement with expenditure in education (as a share of GNI, as a share of GDP and as a share of total expenditure) finding that Argentina is also below the expected level of achievement given its expenditure in education. Taking into account the public expenditure in education only, Argentina should have a score of 460 points instead of the observed 415. Figure 7. Public Expenditure in Education as a % of GNI and performance in international tests 600 500 ARG Average Score 400 300 200 100 - 1 2 3 4 5 6 7 8 9 10 Public Expenditure in Education as % of GNI 43 Figure 8. Public Expenditure in Education as a % of GDP and performance in international tests 600 500 ARG Average Score 400 300 200 100 - 1 2 3 4 5 6 7 8 9 10 Public Expenditure in Education as % of GDP Figure 9. Public Expenditure in Education as a % of total expenditure and performance in international tests 600 550 Average Score 500 450 ARG 400 350 300 250 200 - 5 10 15 20 25 30 Public Expenditure in Education as % of total expenditure Finally we analyze the relationship between average score and total public educational expenditure per pupil as a percentage of GDP per capita in primary school. In doing this, we control for differences in relative prices, and the number of students who are in the system. Based on this indicator, the situation of Argentina changes drastically. Given its expenditure per pupil and according to the international trend, Argentina should have a score of 436 when the observed score is 415, what shows that its performance is not too distant from what is expected. An important difference between Argentina and similar income level countries such as Hungary and Poland is the amount the government is spending per pupil. Although the three countries spends in education more or less the same 44 proportion of GDP, the spending per student is much lower in Argentina (12.3%) compared to Hungary (19.2%) and Poland (23.5%), because Argentina has a population pyramid with a larger base. Argentina has 19% of its population between 5 and 14 years old, whereas Hungary has 12.1%, Poland 14.8% and the Czech Republic 12.4%. Therefore, the educational effort Argentina should make in terms of GDP should be higher to spend per student the same as the comparator countries. The low expenditure per student due to a large proportion of young population is a common fact in Latin America, except for Chile and Mexico, where the public expenditure is higher (14.5 and 13.3 per student respectively). Figure 10. Public Expenditure in Education per pupil as a % of GDP per capita and performance in international tests, 2000 600 550 Ireland Hong Kong Slovak R. 500 Czech R. Average Score 450 Turkey Iran 400 Indonesia 350 Finland Germany Australia Netherlands New Zealand UK Korea Japan Switzerland NorwayBelgium Iceland Austria France U.S.A. Denmark Sweden Cyprus Spain Italy Hungary Poland Greece Portugal Latvia Israel Slovenia Bulgaria Thailand MEX ARG BR CHI BOL COL PAR Macedonia, FYR DOR Albania Morocco PER Belize 300 250 200 0 5 10 15 20 25 30 Total public educational expenditure per pupil as a percentage of GDP per capita. Primary The relatively low expenditure per student is not something we observe only in 2000 (where the economy was in a recession period), but also in 1998, when the economy was booming. It is rather a structural problem. Nevertheless, it is important to point out that some countries with similar expenditure per student, such as the Czech Republic, have much better scores than Argentina; therefore, the lack of investment cannot be the only factor explaining the poor performance. 45 Table 7. Country characteristics and Expenditure in Education Primary, secondary and post-secondary non-tertiary education expenditure as percentage of the GDP Argentina Chile Czech Republic Poland Hungary Spain Italy France Finland U. K. Public Private Total 2.7 2.7 2.7 3.5 2.9 3.3 3.4 4.1 3.7 3.4 0.3 1.2 0.4 0.1 0.2 0.4 0.0 0.2 3.1 3.9 3.1 3.6 3.1 3.7 3.5 4.4 3.7 3.8 0.4 Expenditure per Student in primary school Ratio of expenditure per student to GDP per capita (1998) Primary School 1389 1500 1645 1496 2028 3267 5653 3752 4641 3329 11.6 17.1 12.7 18.3 19.5 19.2 25.5 17.8 21.3 15.8 Source: World Bank, Edstats Average test scores are not a measure of quality, since they are influenced by different student’s characteristics, which are not necessarily related to the educational system. Even assuming that individual ability is homogeneously distributed across countries, international comparisons are affected by difference in enrollment ratio, since the test only covers those students attending a school. PISA tests, for instance, are administrated to 15-years-old students; while developed countries have almost full coverage at that age (a net enrollment ratio close to 100%), Argentina has a net enrollment ratio close to 75%. Basically we do not know the performance of that 25% of Argentineans who are not at school. To make the distribution comparable, one can either truncate the distribution of developed countries or “inflate” the distribution of Argentina, making some assumptions about those who are not at school (for instance, assuming that those 15-year-old individuals who are out of the schooling system would be at the bottom of the test distribution). The alternative we prefer and follow in this work is to control for the students’ socioeconomic status. We simply regress test score on individual characteristics and a set of dummies for each country (fixed effects at country level). The coefficient for 46 the dummy is the average quality of education in each country after controlling for observable household and demographic characteristics. With this measure of average quality we analyze the cross-country differences, comparing the means (the estimated dummy coefficients) and standard deviations (standard deviation of estimated coefficients). For Argentina in particular, controlling for socioeconomic variables does not change the main result, and for the overall sample the change was not so large (the coefficient of correlation between both rankings was 73 %.). Using PIRLS, for instance, Argentina ranks 30 out of 35 countries according to the score in Math, and it remains in the same position after controlling for student characteristics. For Argentina, most of the previous conclusions are preserved when we eliminate the individual factors, therefore we do not show the analysis here.15 IV.3. Quality of Education from a Mincerian Perspective A measure of quality of education can be obtained comparing the returns to one more year of schooling for similar workers (controlling by other worker’s observable characteristics) in the same labor market, but educated in different systems. This is precisely what Bratsberg and Terrell (2002) do using U.S. Census data (1980 and 1990). Since Hanushek and Kim (1999) find a strong correlation between the implicit quality index obtained from Mincer equation for immigrants in the U.S. (who have studied in their countries of origin) and direct measures of school quality (standardized test), we interpret the difference in returns to one more year of schooling as differences in the quality of education.16 From the 67 countries analyzed in Bratsberg and Terrell (2002), Argentina ranked 23rd in 1980 and fell to 27th place in the 1990. Developed countries have better quality than Argentina, but Argentina is the top performer in Latin America and the Caribbean. In addition, Argentina in 1990 was relatively worse off compared to its situation in 1980. But the 1990 workers were educated in the 70s or earlier, and the perception of the deterioration of the public 15 Results are available from the authors. Since migration is not exogenous, there might be a process of self-selection on unobservable characteristics, which might be not homogeneous across countries. Hendrix (2002) controls for this endogeneity, still finding similar rankings. 16 47 education is something relatively new, reflected in the recent growth of the private schools enrollment share. Table 8. Ranking by Implicit Quality of Education Latin America and the Caribbean, 1990 US Census Data Country Argentina Uruguay Chile Brazil Costa Rica Panama Jamaica Colombia Cuba Peru Ecuador Honduras El Salvador Guatemala Dominican Republic Mexico Haiti Overall Rate of Return of one Ranking more year of schooling 27 0,0506 36 0,0461 42 0,0438 46 0,0417 50 0,0377 52 0,0364 53 0,035 56 0,0332 57 0,033 58 0,032 60 0,0277 62 0,0234 63 0,0221 64 0,0214 65 0,021 66 0,0203 67 0,0202 Source: Bratsberg and Terrell (2002) Compared to similar income level countries (see Table 9), Argentina looked relatively well in 1980 and 1990, above Poland, Hungary and Chile, but below The Czech Republic. Note that all these countries, except for Hungary, fell in the ranking between 2 and 4 positions, therefore the trend observed for Argentina was also observed for this group of peer countries. Table 9. Ranking by Implicit Quality of Education Similar Income Level countries Ranking 1980 Country Ranking 1990 Country 30 29 27 21 19 Poland Hungary Chile Argentina Czech Republic 32 27 31 24 21 Poland Hungary Chile Argentina Czech Republic Source: Bratsberg and Terrell (2002) IV.4. Recent Evolution in the Quality of Education The standardized test does not allow us to analyze the recent evolution of Argentina in terms of quality of education. The perception is that the quality has deteriorated; in part as a result of the subsequent crisis and fiscal constraints that has affected the economy in general and the educational system in particular. 48 To analyze the recent performance of Argentina in terms of quality of education we combine two data sets: the quality of education estimation of Bradsberg and Terrel (2002), which gives us a ranking for Argentina for workers in 1980 and 1990 (related with the quality of education when those workers were educated), and PISA (2000). For PISA we construct two measures: a) the average test score and b) the average quality of education, what we measure as the mean test score of the country after controlling for individual characteristics as explained before. We were able to match 35 countries which are in both databases. Table 10 shows the corresponding rankings and the estimated measure of quality for each year. Argentina ranked 19 out of 35 countries in 1980, for workers educated earlier than 1980 (assuming the average worker is 40 years old, it corresponds to students that were 15 years old in 1955). In the US Census of 1990 Argentina fell to the position 23 (again this corresponds to individuals educated in early years than 1990, for instance 1965.) The next column shows the ranking according to PISA-2000, i.e. for 15 years old students who took the test, where Argentina ranked 30 out of 35 countries. Finally, the last column corresponds to PISA 2006, where Argentina ranks 32 out of 35 countries. This shows a very significantly decrease in the quality of education, and Argentina ranks among the worst performers in terms of the evolution, representing the third largest fall in the ranking between 1980 and 2000. Brazil is the worst relative performer in this period (with the highest fall in the ranking), but an important difference is that Brazil, in this period, expanded significantly the coverage, particularly in secondary school, whereas Argentina had already reached a fairly good coverage (in international terms) by the early 80s, therefore the fall in Argentina is not due to a change in composition (as in Brazil) but more related with a fall in quality. Similar income level countries like Hungary, Poland and The Czech Republic are in a much better relative situation in 2000 compared to 1980 and 1990, and they ranked even better in the recent PISA 2006. The increased performance in the ranking for these countries is related to the growth performance. Argentina between 1980 and 2000, where the quality of education apparently went down, grew at an annualized rate of 2.4% (GDP per capita ppp) whereas The Czech Republic, 49 Hungary and Poland grew at 3.2%, 3.4% and 3.4% respectively. What is even more striking is that after the 2000, when Argentina continued loosing positions, growth was even more unfavorable for Argentina, 0.5% per year up to 2006 compared to 1.2%, 1.4% and 1.3% for the East European countries respectively. Table 10. Relative Evolution of Argentina in terms of Quality of Education Ranking 1950s (1) 1960s(2) 2000 (3) 2006 (4) (best to worst) Country Value Country Value Country Value Country Value 1 Norway 0.0632 Japan 0.0822 Netherlands 566.6 Finland 563 2 Switzerland 0.063Norway 0.0789Japan 554.5 Canada 534 3 Denmark 0.059Sweden 0.0739Rep. of Korea 536.8 Japan 531 4 Belgium 0.0584New Zealand 0.0729Finland 533.1 New Zealand 530 5 Australia 0.0566Switzerland 0.0716New Zealand 532.5 Australia 527 6 UK 0.056UK 0.0703Switzerland 527.8 Netherlands 525 7 Canada 0.0555Australia 0.0703Australia 527.1 Korea 522 8 Sweden 0.0543Austria 0.0699UK 526.5 Germany 516 9 Austria 0.0533Denmark 0.0692Canada 522.2 UK 515 10 France 0.0531Belgium 0.069Belgium 521.7 Czech Republic 513 11 Japan 0.0522Canada 0.0685Denmark 514.2 Switzerland 512 12 Netherlands 0.0511Finland 0.0671France 513.6 Austria 511 13 Germany 0.0509Netherlands 0.0654Sweden 509.1 Belgium 510 14 Brazil 0.0496France 0.0645Austria 506 Ireland 508 15 Finland 0.049Germany 0.0635Ireland 501.7 Hungary 504 16 Italy 0.0442Ireland 0.0587Germany 499.8 Sweden 503 17 Czech Republic 0.0442Israel 0.0562Czech Republic 499.1 Poland 498 18 New Zealand 0.044Italy 0.0542Norway 498 Denmark 496 19 Argentina 0.0436Czech Republic 0.0534Hungary 486.1 France 495 20 Portugal 0.0433Macedonia/1 0.0522Spain 480.6 Spain 488 0.0432Spain 0.0518Russian Fed. 479.2 Norway 487 21 Macedonia/1 22 Ireland. 0.0429Indonesia. 0.0508Poland. 464.3 Russian Fed. 479 23 Spain 0.0424Argentina 0.0506Portugal 462.3 Italy 475 24 Romania 0.0414Romania 0.0501Italy 461.7 Portugal 474 25 Chile 0.0406Hungary 0.0482Greece 451.8 Greece 473 26 Indonesia 0.0402Russian Federation 0.045Romania 451 Israel 454 27 Hungary 0.04Republic of Korea 0.0449Israel 448.5 Chile 438 28 Poland 0.0398Portugal 0.0446Thailand 444.1 Thailand 421 29 Israel 0.0386Chile 0.0438Mexico 406.3 Romania 418 30 Russian Fed. 0.0339Poland 0.0431Argentina 404 Mexico 410 31 Republic of Korea 0.0333Greece 0.0429Chile 398.1 Indonesia 393 32 Peru 0.0301Brazil 0.0417Macedonia 391.5 Argentina 391 33 Greece 0.03Thailand 0.0341Indonesia 363.4 Macedonia* 374 34 Thailand 0.0252Peru 0.032Brazil 352.3 Brazil 390 35 Mexico 0.0248 Mexico 0.0203 Peru 324.6 Peru* 327 Notes: (1) Corresponds to the ranking of Bratsberg and Terrrel using US Census 1980 (where we assume the average worker has 40 years old, therefore they were in 4th grade in the 50s) (2) Corresponds to the ranking of Bratsberg and Terrrel using US Census 1990 (where we assume the average worker has 40 years old, therefore they were in 4th grade in the 60s) (3) Ranking according to the SES adjusted mean score based on PISA 2000. (4) Ranking according to average score based on PISA 2006. 1/ Macedonia ranking correspond to the former Yugoslav Republic. * Corresponds to the 2000 score, since 2006 was not available 50 Figure 11. Change in relative ranking between 1980 measure and 2000 measure Republic of Korea New Zealand Netherlands Finland Japan Russian Federation Hungary Greece Ireland Poland Thailand Mexico Spain Israel Czech Republic Australia UK Canada France Romania Germany Portugal Peru Switzerland Sweden Austria Belgium Chile Indonesia Denmark Italy Argentina The former Yugoslav Republic of Macedoni Norway Brazil -25 -15 -5 5 15 25 Combing PISA, PIRLS and LAB, as explained before, we can create an even larger set of countries, what is shown in the next table. In this expanded sample Argentina was 21 out of 42 countries in 1980, it fell to the position 24 in 1990, and to the position 33 in 2000, what again shows a declining trend in terms of relative quality, but not so drastic as the previous figure. IV.5. Equity in the Distribution of the Quality of Education A striking figure for Argentina is the difference in performance between high socioeconomic level and low socioeconomic level students. According to PISA 2000, the 25% with highest SES in Argentina has an average score which is 104 points higher than the lowest 25% students. This is the largest difference among the Latin-American countries included in the sample, and well above the difference for OECD countries. Also note that the top 25% is closer to OECD average (62 points below) than the lowest 25% (84 points). We will discuss in more detail later how achievement and quality is distributed among students and schools. 51 Table 11. Performance in PISA 2000 according the SES quantiles Argentina Brazil Chile Mexico Peru Avg. OECD <25% S.E. 25%-50% S.E. 50%-75% S.E. 379 368 373 385 283 463 (7.1) (3.9) (3.8) (4.1) (5.9) (0.9) 393 387 388 408 317 491 (9.9) (3.8) (4.3) (3.7) (4.3) (0.8) 440 413 420 435 338 515 (9.6) (4.0) (4.6) (4.0) (4.7) (0.7) >75% S.E. 483 435 466 471 383 545 (6.3) (4.5) (3.5) (5.9) (5.8) (0.9) Top 25% vs. lowest 25% 104 67 93 86 100 82 Source: PISA, Argentina country report Here, based on PISA (2000), we analyze in more detail how the achievement is distributed. First we analyze the differences in average score for quintiles based on student’s wealth. We find that Argentina is the country with the highest difference in terms of score points between the 20% wealthier and 20% poorest (97 points), followed by the U.S. (86 points) and Chile (82 points). Latin American countries are in the top of this ranking. The ranking is sensible to the socioeconomic variable chosen to make the quintiles. For instance, some countries which have small differences between the top and lowest 20% in terms of wealth, such as The Czech Republic (31.8 points) have large differences when we chose the household socioeconomic index (based on wealth, parents´ education, and parents´ occupation) as the ranking variable (105 points), and changes from the position 21 to 39 among the 43 countries (ordered from lowest to highest difference). But Argentina is still among the countries with the highest differences, 105 points. We estimate quality as the residual of an OLS estimation of test score on student socioeconomic variables for the entire sample, and then compute the difference in average quality by quintiles instead of the difference between average scores. The results do not change much. Argentina is still among the countries with the highest difference between students with SES in the top 20% and the lowest 20%. 52 Figure 12. Difference in average score between top and lowest 20% according to wealth PISA 2000 Argentina United States of America Chile Portugal M exico Brazil Israel Romania Peru Luxembourg Germany Hungary France New Zealand Indonesia Greece Bulgaria Spain United Kingdom of Great Britain and Nort Thailand Australia Canada Czech Republic Austria Russian Federation Ireland Switzerland Hong Kong Special Administrative Region Republic of Korea Liechtenstein Italy Finland Belgium Poland Denmark Sweden The former Yugoslav Republic of M acedoni Latvia Japan Norway Albania Netherlands Iceland -13.0 -20 96.9 85.6 82.1 78.5 75.6 74.4 73.1 65.4 65.2 63.1 59.2 52.1 51.2 51.0 44.7 40.3 39.6 39.5 35.5 35.2 33.3 32.7 31.8 30.1 29.8 28.8 26.7 26.0 24.8 24.5 23.5 22.2 21.0 19.5 19.2 18.0 16.5 16.0 7.6 5.3 2.3 -2.2 0 20 40 60 80 100 120 Figure 13. Difference in average score between top and lowest 20% according to household socioeconomic index PISA 2000 Germany Switzerland Luxembourg Argentina Czech Republic Bulgaria Belgium Portugal Peru United Kingdom of Great Britain and Nort Israel Hungary Austria Albania Poland Australia Chile United States of America Mexico New Zealand Greece The former Yugoslav Republic of Liechtenstein France Ireland Denmark Russian Federation Sweden Romania Spain Netherlands Italy Canada Brazil Norway Latvia Indonesia Iceland Thailand Finland Hong Kong Special Administrative Region Republic of Korea Japan 119 113 107 105 105 102 99 99 99 98 97 96 95 93 90 89 89 88 88 85 84 84 83 81 76 74 73 72 71 70 69 69 68 68 65 63 59 55 54 49 42 37 19 0 20 40 60 80 100 120 140 53 Figure 14. Difference in average quality between top and lowest 20% according to household socioeconomic index PISA 2000 114.3 113.5 109.4 Mexico Romania Argentina Peru Brazil Portugal Chile United States Albania Indonesia Greece Hungary Poland The former Latvia Spain Israel New Zealand Ireland Luxembourg France Switzerland Germany Italy Belgium United Thailand Canada Australia Russian Bulgaria Finland Czech Republic Iceland Denmark Netherlands Sweden Austria Liechtenstein Republic of Norway Hong Kong Japan 99.3 98.1 95.3 94.3 90.8 90.6 89.7 89.3 86.7 86.5 85.2 83.8 83.5 83.3 82.8 82.5 81.7 81.5 80.8 79.7 79.6 79.2 79.0 78.9 77.8 77.1 77.0 76.8 74.2 74.0 73.3 72.9 71.6 71.3 69.8 68.8 68.8 66.6 61.5 59.3 0 20 40 60 80 100 120 The high inequality in Argentina is not only related to socioeconomic variables, but also in terms of best and lowest performers in this test. If we construct quintiles by test score or quality, Argentina still ranks as one of the countries with the highest difference between the highest 20% and lowest 20% in terms of achievement. In terms of the inequality looking at the entire distribution we find similar results. No matter what index of inequality we take into account, Argentina is among the countries with the highest inequality in terms of scores and quality (3 th and 4th, respectively). Nevertheless, it is also true that in Argentina the inequality in terms of wealth and SES is among the highest in the world. According to the Gini coefficient (or Theil coefficient) for parents’ SES, Argentina ranks 4th among 43 countries. It might look surprising that some countries which usually rank worse that Argentina in terms of income inequality, such as Brazil, are better ranked than Argentina in our ranking of parents’ socioeconomic level, but this is explained by the differences in coverage; since Brazil, for instance, has a much smaller net enrollment ratio than Argentina at secondary school, and therefore the 54 distribution is truncated due to those who are not in the school at 15 years old, which in general have lower income and socioeconomic level. The correlation between the inequality in achievement and the inequality in parents’ SES is extremely high. The inequality in SES explains almost 60% of the variation in the achievement inequality in a cross-country regression. What this seems to show that part of the inequality in education observed in Argentina could be due to a more structural pattern of inequality. Nevertheless, Argentina is above the cross-country linear relationship, what means that its level of inequality in education is above the expected level given its inequality in SES. It is interesting to note that all the countries with similar income level than Argentina have lower SES inequality, and in general they rank better in terms of SES inequality than score or quality inequality. For instance, The Czech Republic has the lowest Gini coefficient for SES, but it ranks 17 according to the Gini coefficient for scores, or 15 according to the Gini coefficient for quality. Figure 15. Gini coefficient for test score PISA 2000 0.160 0.157 Poland Albania Argentina The former Israel Mexico Romania Bulgaria Germany Liechtenstein Brazil Chile Netherlands Belgium Portugal United States of Republic of Korea Switzerland Indonesia Norway Peru Greece Russian Federation Hungary Austria Denmark Czech Republic United Kingdom of Luxembourg Australia Italy France Thailand Iceland Sweden Ireland Canada Spain New Zealand Japan Finland Hong Kong Special Latvia 0.147 0.141 0.138 0.134 0.133 0.131 0.125 0.124 0.122 0.121 0.119 0.118 0.116 0.115 0.115 0.114 0.114 0.114 0.113 0.113 0.112 0.111 0.110 0.110 0.110 0.108 0.108 0.107 0.104 0.103 0.102 0.102 0.101 0.099 0.098 0.097 0.094 0.093 0.091 0.090 0.076 0 0.02 0.04 0.06 0.08 0.1 0.12 0.14 0.16 0.18 55 Figure 16. Gini coefficient for quality PISA 2000 0.070 Netherlands Poland Romania Argentina Indonesia Brazil Thailand Chile Israel Albania Liechtenstein Russian Federation Republic of Korea Portugal The former Yugoslav Republic of Macedoni United States of America Hungary Greece Norway Ireland Spain Mexico France Switzerland Australia Bulgaria United Kingdom of Great Britain and Nort Belgium Czech Republic Germany Canada Finland Italy Sweden Iceland Luxembourg Denmark New Zealand Austria Peru Latvia Hong Kong Special Administrative Region Japan 0.065 0.065 0.064 0.064 0.062 0.060 0.057 0.054 0.054 0.053 0.052 0.052 0.052 0.050 0.050 0.048 0.048 0.047 0.047 0.046 0.045 0.044 0.044 0.044 0.044 0.044 0.044 0.044 0.043 0.043 0.042 0.042 0.041 0.041 0.041 0.041 0.040 0.039 0.039 0.038 0.038 0.036 0 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 Figure 17. Gini coefficient for parents’ SES PISA 2000 Indonesia Albania Thailand Argentina Netherlands Brazil Chile Poland Greece Liechtenstein Mexico Romania The former Yugoslav Republic of Macedoni Spain Republic of Korea France Russian Federation Belgium Portugal Latvia Switzerland Italy Luxembourg Finland Denmark Ireland Sweden Norway New Zealand Hungary Germany Iceland Australia United States of America United Kingdom of Great Britain and Nort Japan Canada Bulgaria Israel Peru Hong Kong Special Administrative Region Austria Czech Republic 0.274 0.239 0.232 0.230 0.224 0.220 0.219 0.219 0.214 0.211 0.208 0.207 0.205 0.204 0.202 0.198 0.195 0.193 0.190 0.189 0.188 0.188 0.186 0.186 0.185 0.184 0.182 0.182 0.181 0.180 0.179 0.179 0.179 0.179 0.178 0.174 0.173 0.171 0.164 0.161 0.161 0.160 0.158 0 0.05 0.1 0.15 0.2 0.25 0.3 56 Figure 18. Relationship between inequality in quality and inequality in SES at country level PISA 2000 0.08 y = 0.2716x - 0.0044 R2 = 0.5666 0.07 AR Gini coefficient for students' quality 0.06 0.05 0.04 0.03 0.02 0.01 0 0.1 0.12 0.14 0.16 0.18 0.2 0.22 0.24 0.26 0.28 0.3 Gini Coefficient for parents' SES Finally we analyze the inequality across schools instead of students. First we compute the average score and average quality at school level, and then we compared the school averages. Argentina is less unequal between schools than between students in terms of scores. Its ranking changes from second at student level in terms of highest inequality (comparing the students who performed at the top 20% and lowest 20%) to ninth when analyze inequality between schools. Some countries, particularly the Eastern European countries we have mentioned before (Hungary, Poland and The Czech Republic) have the opposite result, they are much more unequal at the school level than at the student level. For instance, Hungary ranks 24 in terms of inequality at the student level, but third in terms of inequality at school level. Poland ranks 20 at student level but sixth at school level. Among Latin American countries only Chile shows this pattern of more inequality at school level. The only way a country can have more inequality at school level than at the student level is if the country sorts the good students in one school and bad students in other schools. Argentina, on the other hand, shows that the ability sorting is not so 57 strong, and the mixed of good and bad students is more homogeneous across schools. Chile is the most extreme example, and there is evidence that the voucher system has facilitated the segregation (see Auguste and Valenzuela (2004). In Chile 50%, of the students in primary school attend a private school, which has freedom to admit students as they want. In Argentina, the share is much smaller (20%) and public schools in general do not apply any selection in the admission process (there are, though, some exceptions). We will further explore later in the paper the role that ability tracking and segregation might have on performance. IV.6. Comparing the Educational Systems So far we know now Argentina is underperforming in terms of quality of education, that part of that underperforming could be explained by the low investment in education, given the population in school age. We also know that the quality of education is very unequally distributed within students, and part of this can be explained by the high inequality in students’ characteristics. Before analyzing these hypotheses in more detail, based on PISA and PIRLS we will analyze the differences between Argentina and a set of comparators in the “effective” educational system. That is, we will not compare rules or the design, but how the system is really working according to the teachers and school director responses. To obtain comparable countries we cluster17 countries using a quadratic Euclidean distance rule18 along the following dimensions: GNI per capita (Atlas Method), life expectancy, expenditure in education as a share of GDP, Human Development Index. 17 Cluster analysis encompasses a number of different methods for grouping objects into categories on the basis of their similarity. Cluster analysis is an exploratory tool aimed at sorting country observations into groups in a way that the association between two observations is high if they belong in the same group and low otherwise. Clearly, cluster analysis is used to uncover structures in data without a preliminary interpretation, i.e., cluster analysis helps in discovering structures in data without explaining them. 18 Distance in n-dimensional space is used as a clustering rule for grouping objects. The most straightforward way of computing distances in n-dimensional space is to calculate Euclidean distances. Standard Euclidean and quadratic Euclidean distances are the two most common clustering rules; quadratic distance places greater weight on observations that are further apart. Quadratic Euclidean distance is computed as: 2 . D ( x, y ) = ∑ (x i − yi ) i 58 According to this index from the countries participating in PISA 2000 the most similar to Argentina, in decreasing order are: The Czech Republic, Mexico, Hungary, Poland and Chile. The least similar are: Sweden, Denmark, U.S.A., Japan, Norway and Switzerland. To do the benchmarking with PISA we use the following set of countries: a) Similar income level and educational effort: The Czech Republic, Mexico, Hungary, Poland and Chile b) Developed with similar culture: Spain and Italy c) Developed with high scores: Australia, Canada, Finland and New Zealand Some of the conclusions of this simple benchmarking exercise are: a) Compared to similar countries: Argentina has the highest school life expectancy (average years of schooling) but it is a poor performer in terms of average score, even when it has the highest GNI per capita and second highest HDI. The low score is in line with its expenditure in Educations as share of GDP, since it has the lowest ratio. b) Compared to similar countries: Once we control by student SES and compute the mean score (SES adjusted mean), Argentina is the second country with the highest increase in average score, second after México, and right before Chile. This shows that part of the bad performance is due to lower student SES. The difference with the top performer in this group is 14% in average score and 10% in SES adjusted scores. c) In terms of inequality, Argentina is the country with the highest inequality in individual scores (coefficient of variation), but once we take into account the SES inequality Argentina is the fifth country with highest inequality (slope of the SES line) from the 12 countries. Within the similar countries group, Hungary and The Czech Republic have the highest slopes, what shows high inequality according to SES. Compared to the entire sample, Argentina has the highest coefficient of variation but it is 24 of 42 countries in terms of slopes (ranked from lowest to highest). 59 d) The similar culture countries, Spain and Italy, are also underperformers within similar countries. The most similar country to Italy according to our clustering measure is Australia, which has an average score 34 point higher, or a SES adjusted mean score 28 points higher. For Spain, the most similar country is New Zealand, which has an average score 39 points higher, and a SES adjusted score 19 points higher. But both, Australia and New Zealand show more inequality (according to the SES slope) than Italy and Spain (that show the lowest inequality among the 12 countries), and even higher than Argentina. e) Argentina, with Mexico and Chile, have more young people to educate (population age 5 to 14 years old). Computing the expenditure per student in primary school as a ratio of the GPD per capita, Argentina has the lowest ratio (11.6), even lower than Chile (17.6) and Mexico (13.3). The differences in this indicator are much more notorious when compared the Eastern European countries. Table 12. Country Characteristics Average Score School life expectancy GNI per capita (US$) HDI Expenditure in Life Education (% Expectancy of GDP) (years) Similar Countries Argentina 422 12.9 7000 0.860 3.5 74.3 Chile 416 11.1 4600 0.843 3.7 77.9 Czech Republic 491 12.2 5750 0.865 4.6 75.5 Hungary 481 11.7 4750 0.845 6.0 72.6 Mexico 423 10.9 5580 0.811 5.8 74.9 Poland 480 11.9 4650 0.848 5.8 74.3 Similar Culture Italy 493 12.5 20180 0.924 4.9 80.0 Spain 488 12.9 15050 0.927 4.5 79.5 Australia 527 16.6 20490 0.947 4.8 80.2 Canada 532 12.3 22090 5.2 78.4 Finland 544 13.6 24160 0.938 6.5 79.0 New Zealand 527 14.0 13560 0.925 6.9 78.6 High Score Source: Own elaboration based on World Bank data 60 Table 13. Performance in PISA Average Score Coef. of Variation SES adjusted mean (*) SES Slope (*) Similar Countries Argentina 422 0.279 453.7 41.2 Chile 416 0.216 441.7 40.9 Czech Republic 491 0.200 501.5 49.3 Hungary 481 0.198 486.5 53.9 Mexico 423 0.210 459.5 35.1 Poland 480 0.209 495 37.8 Italy 493 0.186 485.1 31.6 Spain 488 0.173 504.3 31.9 Similar Culture High Score Australia 527 0.190 513.4 46.1 Canada 532 0.176 527.3 36.9 Finland 544 0.165 544.4 29.8 New Zealand 527 0.203 523.2 44.9 Sweden 514 0.180 504.0 35.9 (*) Wilms (2006) Based on PIRLS we create the following set of comparators: d) Similar income level and educational effort: The Czech Republic, Colombia, and Hungary e) Developed with similar culture: Italy f) Developed with high scores: Sweden, England. Table 14. Performance in PIRLS Average St Dev Score Coef. of Var. SES adjusted SES Slope mean (*) (*) Similar Counties Argentina 419.5 90.9 0.2167 446.6 33.3 Colombia 422.4 76.3 0.1807 437.5 21.1 Czech Republic 536.9 60.8 0.1132 542.1 27.4 Hungary 543.2 62.0 0.1141 543.2 37.8 540.7 67.0 0.1240 548.7 22.1 England 552.9 82.7 0.1496 563.7 33.9 Sweden 561.1 61.6 0.1097 548.6 23.1 Similar Culture Italy High Performers (*) Wilms (2006) 61 Since PIRLS test 4th grade students and PISA 3th year secondary school students (15 years old), we can obtain some interesting conclusions of just comparing the performance in both tests: a) Argentina performs relatively better in PISA (secondary school) than in PIRLS (early primary school). Whereas Argentina increases the average score in 2.5 points (or the mean SES in 7.1 points) when comparing PISA and PIRLS, The Czech Republic, Hungary, and Poland reduce the mean by 46, 62 and 48 respectively (or 41, 57, and 64 respectively when we compare the mean SES adjusted score). Since the difference holds (and it is even higher) after controlling by student SES, there is not a compositional effect biasing the result. Argentina somehow is able to reduce the gap, although the gap is still large. b) The SES slope is higher in PISA (secondary school) than in PIRLS (primary school), but this is true for all the countries in this benchmark group. c) Argentina has a SES slope lower than Hungary and The Czech Republic in secondary school, but higher or similar in primary school, what might be explain by the higher drop out, or the differentiation in secondary schools in these two countries compared to Argentina. Hungary, for instance, has two type of secondary schools: a comprehensive or academic secondary school (Gimnázium) and a vocational secondary school (Szakközépiiskola), and the admission to each type depends on previous performance, what might create more sorting and differences than the secondary school in Argentina, where there is less differentiation, and usually the admission does not depend on previous performance, but more on the student choice. Something similar is found in The Czech Republic, where secondary education comprises three main types of schools: secondary general schools (gymnasium), secondary technical schools and secondary vocational schools. d) The differences in performance between Argentina and The Czech Republic, Hungary or Italy (benchmark countries included in both tests) is more significant in primary level (PIRLS) than in secondary school (PISA). For instance, Hungary obtains 124 point more than Argentina in 4th grade, but just 59 points more in 62 secondary school, what shows that the gap is reduced to less than half. This is not explained by student composition, since in the SES adjusted average score the reduction of the gaps is even higher: Hungary obtains 97 points more than Argentina in primary school but just 33 points more in secondary school, a fall in the difference of 74%. With Italy this reduction in the gap for the SES adjusted score is even more marked. Looking at average scores Italy has 121 points more than Argentina in primary school, and 71 points more in secondary school, what gives a reduction in the differences of 31 points. But looking at the SES adjusted average score, Italy has 102 points more than Argentina in primary and 31 points more in secondary, a reduction in the difference of 71 points. e) The increase in the SES inequality given by the change in the slope between primary and secondary education is also more significant in the other countries. The SES slope increases for Argentina in 24% when comparing secondary with primary education, but in The Czech Republic it increases 80%, in Hungary 43% and in Italy 43%. Table 15. Comparing PISA and PIRLS performance Difference in points with Argentina Average Score PISA SES Adjusted mean Czech Republic -69 Hungary -59 Italy -71 -31.4 Sweden -92 -50.3 PIRLS SES Adjusted mean SES Slope Average Score SES Slope -47.8 -8.1 -117.4 -95.5 5.9 -32.8 -12.7 -123.7 -96.6 -4.5 9.6 -121.2 -102.1 11.2 5.3 -141.6 -102 10.2 To understand better how Argentina seems to be able to reduce the gap, we compare the countries in terms of other variables usually associated with quality, such as repetition rate and drop out, We find that Argentina is underperforming in terms of these indicators too, with the highest repetition rates. Given its educational attainment, it means many students finished the school later than expected, what might be seen as an inefficient way to achieve the same average years of schooling and to reduce the score gap with the before mentioned countries. 63 Table 16. Other quality related indicators Repeaters as % of Repeaters as % of total enrolled, total enrolled, primary secondary Argentina 6.4 11.5 Chile 2.4 Colombia 5.4 Czech Rep. 1.1 Pupils reaching Progression to grade 5 (% of secondary cohort) school (%) 84.3 92.8 2.7 99 96.5 4 60.9 89.6 1 98.4 99.2 Hungary 2.2 2.8 n.a. 98.6 Mexico 4.8 2.1 92.6 93.6 Poland 0.6 1.6 99.7 98.5 Italy 0.4 3.2 96.5 99.8 Finland 0.5 0.4 99.4 99.9 Source: Own elaboration based on EdStats, year 2000 To see the role of repetition, we illustrate in the next table the repetition rate for the first 4th grade in the primary school, and the hypothetical survival rate for several of the benchmark countries. Argentina is the most inefficient country, with the highest repetition rate in all the grades, what means that at the end of fourth grade it would end up with just 74% of the students compared with more than 90% in all the other countries. Of course this hypothetical rate is not exact, since students can repeat more than once. In ONE 2000, for instance, from the entire population which is in sixth grade in 2000, 19% repeated at least once, what is a very high ratio. Table 17. Repetition Rate by Grade Hypothetical Survival Rate Hungary Argentina Chile Czech Republic Italy 91.3% 73.7% 92.5% 95.3% 98.2% Repetition rate by grade Grade 1 2.1 5.9 2.0 1.2 0.4 Grade 2 3.8 10.0 0.9 1.5 0.6 Grade 3 1.8 7.2 3.9 1.1 0.5 Grade 4 1.3 6.1 0.8 1.0 0.3 Source: Own elaboration based on EdStats, , year 2000 What are the difference between Argentina and these countries other than the scores? A first noticeable difference is the difference in the yearly time allocated to instruction. In Argentina the average number of hours of school per year is 693, well below all the other countries in the benchmark group. 64 Table 18. Number of school hours per year Mean St. Dev. Coef. Of Variation Argentina 693.7 133.0 0.192 Colombia 1072.5 425.4 0.397 Czech Rep. 809.2 166.9 0.206 Hungary n.a. n.a n.a Italy 1038.4 176.6 0.170 England 958.3 68.0 0.071 Sweden 860.0 124.4 0.145 A second difference is the proportion of students who reach grade 4th with reading problems. According to the teachers, in Argentina 30% of the students need remedial instructions in reading in grade 4, compared to 20% for the entire sample, and 15% in The Czech Republic. In the entire sample Argentina ranks 4th in terms of higher ratio of students with remedial instructions needs (of 34 countries with answers in this question). The school director, when asked about students from grade 1 to 4 shows a similar pattern, learning problems are very generalized and its incidence is higher than any other country. This might be a sign that the problem in Argentina is manifest early in the educational process. Table 19. % of Students with Reading Problems. PIRLS % of students that need remedial instruction in reading according to teachers Percentage of students from grade 1 to 4 that have learning disabilities related to reading, according to the school director 0-10% 11-25% 26-50% more than 50% Argentina 30.0 21.66 31.23 36.22 10.88 Colombia 25.5 40.51 32.13 20.45 6.91 Czech Rep 14.9 52.43 44.3 3.27 0 Hungary 16.5 52.54 40.88 5.9 0.67 Italy 12.0 62.64 32.05 4.58 0.74 England 18.1 38.06 40.96 19.11 1.87 Sweden 16.1 50.64 43.87 5.49 0 World 20.3 71.07 18.76 7.1 3.07 Even a more striking difference is that although a very high ratio of students in Argentina have already learning problems in 4th grade, schools do not have reading specialists. Only 4% of the total students attend a school which has a reading specialist, this is the second 65 lowest ratio in the entire sample (Turkey has 3.5% of the students and Italy 4.4%). This ratio is well below the world average, 44.4%, and the countries with similar students needs as Argentina. Colombia, for instance, which also has a relatively high ratio of students with reading problems in 4th grade, has 12.3% of the students attending schools with reading specialists. In Argentina, only 5% of the students work with reading specialist compared to 14% in Colombia, 20% in Hungary or 32% in The Czech Republic. Sweden, the best performer, has 77% of the students working with reading specialist, and England, another good performer, has 60%, whereas Italy, a low performer for its development level, has only 10%. Sweden and England have also reading specialist working specifically with those students who have difficulty in reading (79% and 73% respectively) , something that all the countries in the sample do more than Argentina. The Czech Republic, for instance, has 17% of the students in schools with reading specialist for the students with problems whereas in Argentina only 3.7%. Some countries, such as Hungary and Italy, do not have a reading specialist but have teacher-aid or other adults helping with those students with problems. In Argentina, only 7% of the students are in schools that use other kind of help for these students. Table 20. Use of reading specialists. PIRLS Argentina Colombia Czech Republic Hungary Italy England Sweden World % of students in school that has a reading specialist available: Always Sometimes Never 1.4 2.7 95.9 2.3 10.0 87.7 21.1 26.9 52.0 6.3 11.8 81.9 0.6 5.1 94.4 12.8 63.7 23.5 17.9 63.7 18.4 11.1 23.7 65.3 % of students working with a reading specialist 5.6 13.9 32.4 19.9 9.6 59.4 77.2 30.0 Other interesting aspect of how teachers teach in Argentina is their response to the teachers needs. If the student begins to fall behind in reading, almost 60% of the students are in schools where the teacher does not have the student doing other activities, whereas in Sweden is the opposite, 84% of the teachers respond given the student other activities. Only Italy has a similar approach to Argentina, where 65% do nothing to compensate. 66 In terms of homework, in Argentina 50% of the students have reading assignment as part of the homework at least three times a week, 20% every day, which below most of the countries except for Sweden, where only 26% of the students has this burden (but the country is working in class, and students do the exercise in the school with the specialist more often than in any other country). In addition teachers in Argentina do not seem to involve parents in the process in the same degree as other countries. It is the country from the group of similar development level with the highest ratio of students in schools where teachers do not sent to home examples of the student work (or at most they do it 6 times a year). Table 21. Parents’ Involvement. PIRLS % of students attending schools where the teacher sends to home example of the student work: Weekly Monthly 6 times a year or less Argentina 31.64 31.47 36.89 Colombia 35.21 34.63 30.17 Czech Rep 54.65 28.73 16.63 Hungary 13.54 58.6 27.86 Italy 59.34 24.24 16.42 England 7.21 6.47 86.31 Sweden 14.23 16.77 69 In terms of how teachers teach, all the countries have a higher proportion of students in schools where reading instruction is a separate subject. Only Colombia and Sweden have an pattern similar to Argentina. In The Czech Republic and Hungary reading as a separate subject is more common. Table 22. Reading Instructions. PIRLS Reading Reading instructions as instruction as a part of different separate subject curricular areas Both equally Argentina 19.28 6.8 73.92 Colombia 37.02 8.19 54.8 6.5 35.25 58.26 55.23 17.74 27.04 Czech Republic Hungary Italy 4.69 28.72 66.59 England 9.58 42.69 47.73 Sweden 27.98 7.19 64.83 67 Argentina is the country with lowest quantity of hours per week used for Language instruction among the benchmark countries, and one the lowest in the sample: only 8 countries from 35 have less hours per week than Argentina, in general poor performers too. Argentina is also the country in the benchmark group with the lowest number of hours per week allocated to reading instruction, and also has differences with other countries in terms of the time allocation (Sweden allocates proportionally more time to reading than Argentina). Argentina and Colombia are also the countries with a higher percentage of the weekly time allocated to teach Language assigned to formal instruction. Table 23. Teaching Time Allocation. PIRLS Hours of Hours of Ratio of hours of Percentage of the Language Reading reading instruction time used for formal Instruction per Instruction per to language reading instruction week week instruction Argentina 6.86 1.85 26.9% 50.6% Colombia 8.88 1.87 21.1% 65.2% Czech Rep. 6.99 2.28 32.7% 26.1% Hungary 6.98 1.88 26.9% 37.9% Italy 7.85 2.26 28.7% 35.7% England 7.27 2.40 33.0% 24.6% Sweden 7.20 2.35 32.6% 26.0% It is also interesting to note that students in Argentina receive more often reading activities as a whole-class activity, which is also observed in Italy, and in a lower degree in Colombia. Sweden, on the other hand, do not use generalized activities so often, neither England or Hungary. Table 24. Teaching methodology Frequency of reading activities as a wholeclass activity always or almost often sometimes never always Argentina 57.9 37.6 4.6 0.0 Colombia 40.2 41.4 18.4 0.0 Czech Rep. 38.1 54.0 7.9 0.0 Hungary 10.9 64.7 23.7 0.7 Italy 56.9 40.4 2.7 0.0 England 25.3 48.3 26.5 0.0 Sweden 14.9 22.9 54.3 7.9 68 It is also the case that in Argentina as well as in Colombia (and with the exception of the Czech Republic) teachers tend to create mixed-ability groups when the students are doing reading instructions or reading activities in group. Ability grouping within the class is not common in Argentina, neither in Colombia or Italy, where 25%, 31% and 36% of the students are never cluster in same ability groups, compared to Hungary where 44% of the student are grouped in same ability groups often or always. Table 25. How teachers work with student groups How often do you create mixed-ability groups? Sum of 1 often sometimes never and 2 Country always or almost always Argentina 26.8 31.3 Colombia 13.1 Czech Rep. 73.1 Hungary 34.6 7.3 27.4 37.0 4.9 21.2 1.0 14.5 Italy 6.4 England Sweden Sum of 3 and 4 58.1 41.9 22.5 40.5 59.5 0.7 78.1 21.9 62.2 22.3 15.5 84.5 19.0 53.0 21.6 25.4 74.6 2.7 10.7 80.3 6.3 13.5 86.5 6.4 10.6 58.6 24.5 16.9 83.1 always or almost always How often do you create same-ability groups? Sum of 1 often sometimes never and 2 Sum of 3 and 4 Argentina 6.84 18.67 48.97 25.52 25.5 74.5 Colombia 3.07 21.29 44.74 30.89 24.4 75.6 Czech Rep. 2.43 13.43 69.9 14.23 15.9 84.1 Hungary 5.63 38.96 50.67 4.74 44.6 55.4 Italy 2.12 8.66 53.39 35.83 10.8 89.2 England 26.54 54.69 16.99 1.78 81.2 18.8 Sweden 4.74 22.65 58.15 14.46 27.4 72.6 Finally, Argentina and Colombia use more often reading material for students with different reading levels than Hungary and The Czech Republic, but much less than rich countries. This might be related with the availability of resources. It is interesting to note that teachers do not complain about the time available for teaching in Argentina, since 90% think to have adequate time available, similar to Hungary and The Czech Republic (94% and 97% respectively) and well above what teachers think in Italy and Sweden (53% and 28% respectively). Similarly 89% of the students are with teachers 69 that think the school offers enough incentives for the teacher development, a ratio similar to Hungary and The Czech Republic, and well above Italy and Sweden. Table 26. Use of Reading Instructional Material for students at different reading levels same material, same material, same material, Different different reading same reading different reading material, different level, different level level, same speed reading level speed Argentina 4.7 73.8 5.3 16.3 Colombia 10.5 66.2 4.3 19.1 Czech Rep. 2.2 85.8 3.1 8.9 Hungary 1.1 90.6 1.2 7.1 Italy 8.2 53.7 6.8 31.4 England 0.0 29.5 1.3 69.2 Sweden 2.4 32.9 0.9 63.9 Next we explore whether there are significant differences in the parents’ characteristics. In particular we are interested on those variables that can give us an idea of the educational effort of the parents (expenditure in education, time allocated to their kids educational process, etc.). We start comparing expenditure. Among the group of similar countries, in 2000 Argentina was first in terms of GNI per capita (Atlas Method), third in purchasing power parity, and second according to the Human Development Index. According to PISA, Argentina was 4th according to SES, first according to self report SES, and third according to the SES of the father’s occupation. Therefore the relative position of parents seems to be in line with the aggregate income level variables. The striking figure is the spending of Argentinean parents on educational resources or related goods. Argentina ranks almost in the bottom (close to Mexico) in terms of the proportion of households with more than 50 books, and last with Chile in terms of the PISA Index of Educational Possessions. Argentina has an income per capita adjusted by ppp very similar to Hungary, and a higher HDI, but whereas 95% of the Hungarian families have more than 50 books, in Argentina only 69%. Since Argentina has a more unequal distribution than Hungary (for instance, the Gini coefficient for parents’ SES is 0.23 for Argentina compared to 0.18 for Hungary), we 70 could think that the decreasing marginal utility of books might be generating this effect (Argentina has more poor people, and the rich people might not compensate what these poor people do not expend on books, what results that Hungary with the same average income has more spending on books). We explore this hypothesis first looking at the top decile, and then looking to the entire distribution. We find that even in the top decile Argentinean students have less books than the Hungarian students. The difference between both countries is larger for low SES families. This finding is not only for books, but for most of the variables related to educational expenditure, summarized in the Index of Educational Possessions. The evidence seems to suggest that in Argentina not only there was a lower expenditure per student in education (adding public and private expenditure) than in Hungary when both countries were similarly rich, but also parents showed the same pattern, equally rich parents spend less in educational related goods in Argentina than Hungary. Table 27. Income Level and Educational Resources. PISA 2000 GNI per capita GDP per HDI capita PPP % of Mean Index of home Mean Mean Self Households occupational educational SES SES with more than SES resources 50 books Argentina 7,000 12,210.31 0.86 43.3 66.7 40.3 69% -0.858 Chile 4,600 9,239.71 0.843 39.9 60.7 37.3 70% -0.970 Czech Republic 5,750 15,731.24 0.865 48.3 49.8 42.6 96% 0.078 Hungary 4,750 13,212.19 0.845 49.5 53.2 42.0 95% 0.067 Mexico 5,580 9,037.90 0.811 42.5 66.6 40.0 67% -0.725 Poland 4,650 10,434.74 0.848 46.0 57.3 40.2 85% -0.305 Italy 20,180 25,808.90 0.924 47.1 58.2 43.5 91% 0.178 Spain 15,050 21,400.86 0.927 45.0 58.8 42.4 94% 0.183 Australia 20,490 25,422.80 0.947 52.2 57.2 45.6 95% 0.048 Canada 22,090 27,796.65 52.9 61.6 45.7 93% 0.005 New Zealand 13,560 19,574.64 0.925 52.2 57.2 45.2 94% -0.038 Sweden 26,950 26,122.89 0.949 50.6 55.3 45.4 94% 0.032 71 Figure 19. Distribution of students according to number of books at home. PISA 2000 60 50 40 Argentina Hungary 30 20 10 0 none 1-10 11-50 51-100 101-250 251-500 > 500 Figure 20. Proportion of students with more than 50 books at home according to their SES category. PISA 2000 120% 100% 80% A rgentina 60% Hungary 40% 20% 0% SES Index 72 Figure 21. Index of Home Educational Resources according to SES category. PISA 2000 100% Index of Home Educational Resources 50% 0% -50% -100% Argentina Hungary -150% 88 79 83 77 71 69 67 65 61 59 57 55 53 51 49 44 46 42 40 36 38 34 32 30 28 26 24 22 20 16 -200% SES Index In fact Latin America as a regions seems to show a lower demand, since the same pattern is observed for Mexico, Brazil, Peru and Chile, the spend less in books than similar income level countries. Figure 22. Income level . PISA 2000 100% Latvia Czech Rep Hungary 95% Russia Korea Israel Bulgaria 90% % of Households in PISA with more than 50 books Iceland Spain New Zealand Australia Sweden Canada Austria Finland Germany UK Ireland Italy Greece 85% Poland Norway Switzerland Denmark France Luxembourg Japan USA Netherlands Belgium Portugal Romania 80% Macedonia FYR 75% Thailand 70% Chile Argentina Hong Kong Mexico 65% 60% Indonesia Peru Brazil Albania 55% 50% - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 GDP per capita PIRLS shows a similar pattern. In Argentina 66% of the students have less than 25 child books at home, compared to 23% in Hungary or 18% in The Czech Republic. Only 37% 73 of the students have the minimum level of educational resources at home, compared to 76% in Hungary, or 78% in The Czech Republic. Figure 23. Proportion of Students with more than 25 Child Books at home . PIRLS 2001 100 87.33 90 81.76 77.17 76.6 80 70 57.09 60 50 40 33.72 29.52 30 20 10 0 Argent ina Colombia Czech Republic Hungary It aly England Sweden Figure 24. Proportion of Students with minimum educational resources at home . PIRLS 2001 100 92.9 88.0 90 77.7 80 75.6 72.7 70 60 50 40 37.0 30 21.9 20 10 0 Argentina Colombia Czech Republic Hungary Italy England Sweden Argentina shows also disadvantages in terms of early home literacy activities (EHLA), as well as Colombia. For instance, whereas 61% of the students in Hungary show high early home literacy activities, in Argentina just 50%, but the main difference is in those families with low EHLA (16% in Argentina compared to 7% in Hungary). This variable shows a high correlation with the student score, 12% of the student level variation is explained by this index. The difference between Argentina and Hungary are not so large for high educated parents but for low educated parents. In Hungary only 14% of parents with less than lower secondary show low EHLA, whereas in Argentina the ratio for this group of parents is 23%. 74 Table 28. Index of Early Home Literacy Activities. PIRLS 2001 Argentina Colombia Czech Republic Hungary Italy England Sweden High 49.9 40.1 51.6 61.3 62.4 83.0 41.4 Medium 34.6 38.9 40.9 31.9 29.6 14.5 44.7 Low 15.5 21.0 7.6 6.8 8.0 2.5 13.9 Table 29. Index of Early Home Literacy Activities By parents educational level. PIRLS 2001 Argentina High Medium Low finished univ. or hig 70.8 22.47 6.73 finished upper second 61.6 28.48 9.92 finished lower second 44.49 39.18 16.33 some prim./lower sec. 38.92 38.58 22.51 Hungary High Medium Low finished univ. or hig 71.41 23.93 4.66 finished upper second 57.72 34.15 8.13 finished lower second 48.72 39.37 11.92 some prim./lower sec. 48.25 38.07 13.68 The importance that parents give to reading is also remarkably lower in Argentina. 74% of the parents in Hungary have a high attitude compare to 33% in Argentina, a variable that for the entire sample explains almost 7% of the student variation in test score. Table 30. Importance given by family to reading. PIRLS 2001 Argentina Colombia Czech Republic Hungary Italy England Sweden High 32.9 40.9 64.2 74.1 56.0 68.6 71.3 Medium 62.4 52.5 31.9 23.4 37.3 25.7 23.8 Low 4.8 6.7 3.9 2.5 6.7 5.7 4.9 In terms of school climate or resources, Argentina has a higher proportion of students in schools with high violence, low educational resources, less computers per students and less libraries (14% of the students in Argentina attend a school without a library compared to 5% in Hungary or 8% in The Czech Republic). 75 Figure 25. Index of school violence 57.3% 45.9% 42.8% 38.9% 30.1% 23.5% Argentina Colombia Czech Republic Hungary Italy Sweden Table 31. Availability of school resources. PIRLS 2001 High Medium Low Argentina 35.7 48.6 15.7 Colombia 22.8 48.2 28.9 Czech Republic 67.2 29.9 2.9 Hungary 62.8 27.8 9.4 Italy 36.2 57.3 6.6 Sweden 76.7 17.5 5.8 What this simple benchmarking shows is that Argentina has several differences compared to the other countries what might be explaining the low performance. A first important difference is resources, in terms of instructional time, additional resources for low performers, materials and libraries. A second difference is the teaching approach the school and teachers have in terms of grouping students in the class, in terms of allocating the instructional time, and in terms of differentiating the educational process to have low performers more involved, or to make an effort for the low performer students being able to catch up the rest of the class. Perhaps this lack of differentiation is the explanation for the very high repetition rate and drop out rate. There seems to be also differences in terms 76 of what parents contribute to the educational process, again Argentina showing a more disadvantageous situation. 77 V. Quality of Education with-in Argentina The average quality of education in Argentina shows some regional disparity that we will explore in more detail in this section. Argentina is organized in 24 jurisdictions or provinces, and the primary and secondary school are administrated at this government level, therefore it seems reasonable to expect some regional variation, particularly since there are large differences in terms of economic development across regions and socioeconomic characteristics. To compare the achievement at province level we use three different measures: a) Mincerian Quality: measure as the returns to education for migrants to Great Buenos Aires region who were educated in their province b) Achievement: average test score in ONE Language Test c) Test Quality: obtained as the coefficient for a provincial dummy in a regression at individual level of test score in language against socioeconomic characteristic of the students and the dummy. To compute measures b and c we consider only urban basic education 6th grade schools (i.e. we eliminate from the sample rural and adult schools). We standardized the test score to have a national mean for this restricted sample of 500 and a standard deviation of 100. The details of this analysis is explained in Annex D, here we summarize the main results. Analyzing test scores at individual level we find: a) Students with more educated parents have higher scores in both tests for all the parents’ educational levels. A student with a mother who has not finished primary school obtains on average a score of 467 point in Language if he/she is attending a public school compared to 514 in a private school. The difference between average score according to the mother’s education is more notorious in private schools than public schools. A student with a mother with university degree has on average a higher 78 score than a student with a mother not finishing primary school of 55.5% of one standard deviation at the sample (55.5% SD) in a private school, whereas in a public school this difference is 36.7% SD. The gains in terms of test score of having a more educated mother is more important in the math test than in language (63.2% SD and 41.9% SD for private and public schools). b) The regional difference in test score is relatively large. The top performer has an average test of 77.5% SD or 87.1% SD higher than the worse performer in Mathematics and Language respectively. The difference is much lower for private schools than for public schools. Private schools who less dispersion in Language, whereas public schools less dispersion in Mathematics. d) If we merge CABA and GBA in one region, the average test score is 497.6 and 505 in math and language respectively, what reduces enormously the regional differences. Now the top performer (which is Santa Fe in math and San Luis in Language) is only 60% SD and 47% SD over the worse performer (for math and language scores respectively). e) In terms of variance decomposition, 38% of the total variance in test score at individual level is between-schools for math test score, and 36% for Language test score, and the between-classes variation is slightly higher 43% and 40% for math and language respectively. Table 32. Between-classes variation Mean St. Dev Mathematics overall Max 100.0 215.1 699.8 between 66.2 233.3 698.4 within 76.6 134.0 829.2 Language overall 500 Min 500 N= 484,008 n= 21,472 T-bar= 23 100.0 179.1 692.8 N= 504,469 between 63.7 237.3 692.8 n= 21,409 within 78.4 809.8 94.5 T-bar= 24 79 Table 33. Between-schools variation Mean St. Dev Mathematics overall 500 between within Language overall 500 between within 500 Min Max 100.0 215.1 699.8 N = 484,008.0 62.0 247.4 691.7 n = 82.0 121.5 805.3 100.0 179.1 692.8 61.0 254.0 687.1 82.8 89.3 795.1 100.0 215.1 699.8 T-bar = 9,857.0 49.1 N = 504,469.0 n = T-bar = N 9,847.0 51.2 = 484,008.0 If we merge GBA and CABA as one observation, the between-regions variation explains only 3.3% and 2.6%, for Math and Language tests respectively, of the individual test score variation. Not merging these two jurisdictions gives us slightly higher between-regions variation (4% and 3.8%, respectively) for the reasons already mentioned. In other words, if we think that most of the regional differences in school inputs are between provinces (responsible for providing the local public good), then eliminating the differences between provinces it will only improve achievement at the student level in just 3 to 4%. f) To analyze the inequality within each province we compute the coefficient of variation at province level (ratio of standard deviation of individual test score at province level to average score at province level). In Math, the coefficient of variation goes from 17.1% in CABA to 21.4% in Santiago del Estero; for Language, from 15.8% in CABA to 22.6% in Santiago del Estero. g) We find a strong positive relationship between the average test score at province level and the province development level (measure as the GDP per capita in ppp for the year 2000). This relationship holds for both public and private schools. h) When we analyze inequality, we find that the richer is a province, the lower the inequality. 80 Figure 26. Relationship between Average Test Score and GDP per capita (in ppp) at province level) 560 550 Average Literature Test Score at province level 540 530 520 510 500 490 480 470 460 - 5.000,0 10.000,0 15.000,0 20.000,0 25.000,0 GDP per cápita in ppp (year 2000) Figure 27. Relationship between the Coefficient of Variation in Test Score and GDP per capita (in ppp) at province level) Coefficient of Variation, Literature Test Score at province level 0,24 0,22 0,2 0,18 0,16 0,14 0,12 0,1 - 5.000,0 10.000,0 15.000,0 20.000,0 25.000,0 GDP per cápita in ppp (year 2000) We estimate “test quality” as an OLS regression at student level of standardized test (TS) as: TSi = β 0 + β1 X i + β 2 Di + ε i where D is a vector of dummy variables for the regions, X are socioeconomic characteristics of each student (parents’ education, index of wealth, index of SES, age, gender, family size, books at home, and whether he/she has repeated a grade before 6th grade), and ε is an independent but not identically distributed (i.n.i.d) error term (where 81 White robust standard error estimation was used). We will refer to the coefficients in D, added to the constant, as Test Quality. The results are: a) As expected we found: a negative coefficient for age, family size, and whether he/she has repeated, and we found a positive sign for parents’ education, the variables related to wealth, and the number of rooms per family member. In terms of gender, we find that girls perform better in Language and worse in Math than the boys, another usual result in the literature. Regarding the region dummies, which are the objective of study here, the following table shows the results for each concept, where provinces are ranked from top performer to worst performer. b) The ranking of provinces is affected whether we consider Test Quality or Average Test Score as the ranking variable, or whether we consider Math or Language Test, but the differences in general are not so large. Note that once the differences in socioeconomic level are removed, the disparity across provinces reduces, what shows that the quality of education is more equally distributed that income (and other socioeconomic characteristics). Nevertheless, even after controlling for students family characteristics, there is strong relationship between the average test quality at province level and GDP per capital (in ppp) at province level as the following figure shows. Figure 28. Relationship between Test Quality and GDP per capita (in ppp) at province level) 530,00 Average Test Quality (Literature) at Province Level 520,00 510,00 500,00 490,00 480,00 470,00 460,00 - 5.000,0 10.000,0 15.000,0 20.000,0 25.000,0 GDP per cápita in ppp (year 2000) 82 c) After controlling for student’s family characteristics the within province inequality reduces substantially, as the coefficient of variation computed for the dummy coefficient collapses from a range between 15.8% to 22.6% in Literature, for instance, to 0.6% to 1.1%. What is even more remarkable is that the positive relationship between income level and test score inequality disappears once we consider test quality. All the provinces has a relatively similar inequality, around a coefficient of variation of 0.9% . a) After controlling for student’s socioeconomic characteristics the difference between the best province and the worst province reduces 33.4%. In test scores, the best province has an average score which is 85.6% SD at individual level score, which reduces to 57% when test quality is considered. b) The differences between provinces are still large, and the average test quality is positive correlated with the income level of the province. c) But the inequality within students in each province reduces significantly. Inside each province, students receive a relatively homogenous quality, and most of the variation is between provinces. Figure 29. Inequality and GDP per capita (in ppp) at province level) 2,0% Coefficient of Variation in Literature Scores at province level 1,8% 1,6% 1,4% 1,2% 1,0% 0,8% 0,6% 0,4% 0,2% 0,0% - 5.000,0 10.000,0 15.000,0 20.000,0 25.000,0 GDP per cápita in ppp (year 2000) Using the EPH household survey we estimate excess returns to education according to the province where the worker studied as: 83 ln( wi ) = β 0 + β1 X i + β 2YS i + β 3 DiYS i + ε i where w is the worker wage, X are worker characteristics (except education), YS is years of schooling, and D is a vector of dummy variable that indicate in which province the migrant was educated. We excluded from our analysis immigrants from other countries, and we restrict the sample to those workers that have complete secondary education as the maximum level. To have enough number of migrants, we pool together the EPH survey for 8 different times periods during 2000 and 2001, two years that were highly stable (zero inflation, the economy did not grow, and there were not changes in wages). We estimate this equation following Heckman two-steps procedure to control for the participation bias. β3 should be interpreted as the excess return that a worker educated in other than Buenos Aires province obtains compared to a non-migrant worker. Since we are interested in ranking provinces according to their quality of education, we focus on β3, which vary by province of origin. We call the estimated coefficient as Mincerain Quality of education, to make explicitly that this concept of quality is different than the concept of quality captures in the test score. A priori we should not expect both measures of quality to give us the same result or ranking, since they capture different aspects. Test Quality measures the average achievement of a student in a Language or Math score, after controlling for individual characteristics, what takes into account the curricula contents in 6th grade. In some sense, the Test Quality measures one dimension of the multidimensional product space, Language (or Math). On the other hand the Mincerian Quality measures the dimensions that the labor market considers relevant, what a priori might not be correlated with the Language curricula in 6th grade. The results are: a) The Mincerian Quality and Test Quality measures are highly correlated, particularly when Language is considered (0.6 for Language, 0.5 for Math). The ranking although, shows some changes depending on which measure is considered. If we classify provinces in high, medium and low quality, 10 out of 18 has the same classification, and only in 2 cases a province change from low to high quality depending on the measure. 84 b) The heterogeneity in quality across provinces is moderate. The between-provinces variation accounts only for 3% of total test score variation. The difference between the worst and best performer according the Test Quality is only 48% of one standard deviation at individual level or 4 times the standard deviation between provincial averages in Test Quality. Table 34. Ranking of Provinces according to different measures of Quality of Education Test Quality (Language) Catamarca 68.73659 Corrientes 70.80002 Chubut 71.05939 Chaco 71.58761 Sgo.del Estero 71.92281 Jujuy 72.45296 Tucumán 73.08728 Misiones 73.20003 San Juan 73.37159 Formosa 73.76364 La Pampa 73.95602 Entre Ríos 74.40442 Córdoba 74.42363 Río Negro-Bs. As 74.51502 Santa Fe 75.46587 Mendoza 75.65468 San Luis 76.0322 Salta 77.18568 Difference between the best and worst performer 8.449 Average test score (Language) Catamarca 54.71535 Corrientes 54.90631 Sgo.del Estero 54.97566 Chaco 55.38323 Jujuy 57.12993 Formosa 57.38063 Misiones 58.20464 Tucumán 58.76175 Chubut 60.12679 San Juan 60.89456 Entre Ríos 62.34269 Salta 62.40857 Río Negro-Bs. As 63.00591 Córdoba 63.15547 La Pampa 63.18432 Mendoza 63.4216 Santa Fe 63.6759 San Luis 64.12317 9.408 Mincerian Quality /1 Catamarca 0.01154 Jujuy 0.039132 Chaco 0.0454352 Chubut 0.059195 San Luis 0.0823863 Córdoba 0.0901121 Misiones 0.0911275 La Pampa 0.0924342 Santa Fe 0.0942947 Corrientes 0.0973847 Sgo.del Estero 0.098145 San Juan 0.0990863 Entre Ríos 0.1007615 Río Negro-Bs. As 0.1025249 Salta 0.1103325 Mendoza 0.1128027 Formosa 0.120258 Tucumán 0.1366031 0.125 Notes: 1/ Buenos Aires was not included in this ranking because is the province which is used to measure the returns for migrants (therefore we do not have a measure for GBA , the city of Buenos Aires (CABA) and the rest of Buenos Aires. The provinces of La Rioja, Santa Cruz and Tierra del Fuego were not considered in the Mincerian ranking because of the low number of migrants to Buenos Aires. Next we analyze the disparity across provinces in both measures and public expenditure in education. We find that disparity in terms of quality of education and expenditure in education is much smaller than the GDP disparity. For instance, the richest province has 8.4 times the GDP per capita of the poorest province, what is large compared to developed countries (Australia 1.5 times, USA 2 times, Canada 1.79 times, Spain 2.1 times), and Brazil (6 times), but not as large as other developing countries such as Russia (12 times) or China (17 times). The public expenditure in education shows also a lower heterogeneity than the GDP. For instance, the expenditure in education per capita in the province that spends the most is 4.5 times the expenditure of the province that spends less. A similar difference is found when we analyze the public expenditure per public school student, which is 4.3 times between the top and the bottom. 85 Next, we analyze the relationship between the quality of education and GDP per capita (or GDP per capita growth). The natural question is to what extend the disparity in quality is associated with the disparity in development. A simple analysis between the quality of education and GDP per capita at province level shows a positive and moderate correlation. The coefficient of correlation is 15.4% or 35.7% when we compared the GDP per capita with the Mincerian Quality or Test Quality, respectively. The correlation is much higher for the Average Test Score: 64.6%, a coefficient very similar to the cross country correlation between GNI per capita and average test score (66.8%). Table 35. Expenditure and Quality across provinces Public Expenditure in Education as: Per student Per Teacher A share in basic in Basic of GDP school School (US$) (US$) 4.5% 1,042 22,001 8.9% 1,358 20,054 4.0% 1,076 24,646 8.4% 840 17,590 8.9% 968 17,751 4.5% 1,327 21,171 6.2% 1,157 20,609 11.9% 1,019 19,569 9.1% 1,014 15,067 5.8% 1,778 25,160 10.9% 1,614 24,429 4.7% 1,102 21,877 6.5% 796 15,758 5.8% 2,027 28,671 5.5% 1,283 16,822 6.0% 678 14,399 7.8% 1,216 22,749 4.5% 1,365 18,478 7.1% 2,889 34,350 4.3% 1,076 19,993 10.1% 1,024 20,019 5.5% 852 13,633 4.2% 2,143 31,881 1.6% 1,706 23,831 A share of Total Public Expenditure Buenos Aires Catamarca Cordoba Corrientes Chaco Chubut Entre Ríos Formosa Jujuy La Pampa La Rioja Mendoza Misiones Neuquén Río Negro Salta San Juan San Luis Santa Cruz Santa Fe S. del Estero Tucuman T. del Fuego C.B.A. 35.6% 26.9% 33.4% 33.8% 26.7% 26.8% 28.1% 23.7% 28.4% 23.9% 21.0% 29.4% 25.9% 26.3% 27.8% 23.4% 23.7% 28.2% 21.7% 33.1% 31.5% 26.7% 19.4% 33.3% TOTAL Coef. of Variation 30.8% 0.158 Coef. of correlation with Mean Quality 22.3% 4.2% 0.385 -39.7% 1,117 0.388 3.2% 21,012 0.244 3.5% Test Quality GPD per capita Mean St. Dev. Coef. of Variation 6,161 4,636 6,693 3,107 3,265 8,392 4,994 2,835 3,557 7,424 4,593 6,033 3,631 10,514 6,847 3,458 4,010 8,278 12,013 6,490 2,828 3,745 17,046 23,639 72.4 68.74 74.42 70.80 71.59 71.06 74.40 73.76 72.45 73.96 68.74 75.65 73.20 0.720 0.782 0.725 0.760 0.748 0.760 0.738 0.779 0.737 0.776 0.794 0.727 0.751 0.99% 1.14% 0.97% 1.07% 1.05% 1.07% 0.99% 1.06% 1.02% 1.05% 1.15% 0.96% 1.03% 74.52 77.19 72.39 71.92 75.47 73.37 76.03 73.09 71.45 79.02 0.754 0.735 0.793 0.762 0.725 0.757 0.768 0.730 0.841 0.728 1.01% 0.95% 1.09% 1.06% 0.96% 1.03% 1.01% 1.00% 1.18% 0.92% 7,093 0.718 73.3 0.034 35.7% 100.0% The correlation between real per capita GDP growth (between 1993 and 2000) is much more correlated with the Test Quality (a coefficient of correlation of 48.2%) than GDP. Is the quality of education restricting economic growth at province level or the differences are due to more spending on education in those provinces that grew faster? The almost null correlation between Mincerian Quality and growth (a coefficient of correlation of 86 9%) and the fact that workers can migrate relatively easily seems to support the idea that causality goes from a healthy regional economy to quality of education. It is important to take into account that in 1993 school administration was decentralized from the national level to the province level, what might have increase the disparity in resources and other relevant variables. To analyze this we compare the ratio of public expenditure in education to GDP in 1994 and 2000, finding that the heterogeneity fell (the between provinces standard deviation fell from 0.08 to 0.03, and the coefficient of variation from 1.29 to 0.39). In addition, there is some evidence that the decentralization increased the quality (see Galiani and Schargrodsky (2002)). In terms of public expenditure in education and quality of education, we find a negative relationship between expenditure in education as a ratio of GDP and quality, and a positive relationship between expenditure in education as a ratio of total expending and quality. The explanation for this result seems to be the role of private schools, which is different across region. Unfortunately we do not have the expenditure in private schools to have a better measure of the amount of resources allocated to education by provinces. 87 VI. A Hierarchical Lineal Model with PISA In this section we use an HLM model to compare the achievement of Argentinean students in PISA with other countries and to explore what are the school factors behind those differences. We base our analysis in Language test, since this was the objective of PISA in 2000 (and the test that every student had to solve, whereas for math and science only a random sub-sample of the students had to solve it). VI.1. Variance Decomposition A first issue is what percentage of the total variance in test scores is related to school characteristics and country characteristics, what eventually can be related to educational policies and educational effort. To obtain this variance decomposition we estimate a 3-level HL null model. For the entire sample of 38 countries (Reading Literacy Test), 27% of the variance is at country level, 30% at school level, and 43% within school variance. This means that a large part of the test results is related exclusively to student characteristics (43%), but there are some important differences across countries and schools what might be related to different policies. Also note the importance of the between country variance (27%) compared to the very low variation across provinces in Argentina (3%). Separating the entire sample in OECD and non-OECD countries we find that the country level variance is much more important in the second group of countries, and the within variance is much smaller. This means that these countries are not so heterogeneous at individual level but much more heterogeneous at country level, what can be interpreted that the differences between these countries is mainly due to different policies rather than different individual characteristics. 88 Table 36. Percentage of variance in student performance in reading, mathematical and scientific literacy Between Between Within countries schools Reading literacy OECD countries 8 35 57 Partner countries 28 35 37 All PISA countries 27 30 43 Mathematical literacy OECD countries 16 31 54 Partner countries 36 27 38 All PISA countries 35 25 40 Scientific literacy OECD countries 10 32 59 Partner countries 27 28 45 All PISA countries 26 27 47 Source: Own elaboration based on PISA (2005) Next we analyze a 2-level HL null model at country level to see what percentage of the within country variance is related to schools (between schools) and to student characteristics (within schools). On average, for the entire sample 39% of the variance in Reading Scores is between schools and 61% within schools. Argentina, although, has a much higher between school variance (50%), and it ranks 13 out of 38 countries in terms of higher between-school variance importance (see Figure). This relative high importance of the between-schools variance is common in Latin America (Peru, Chile and Mexico rank even higher than Argentina, and Brazil ranks 16), what is usually associated with high inequality between schools (either because of student composition or because of high heterogeneity in school quality). This result is not surprising since these countries have a high level of income and educational inequality. 89 Figure 30. Between and within school variance decomposition with PISA Between-school variance, as a share on total variance Within school variance, as share on total variance Hungary Poland Peru Austria Belgium Germany Bulgaria Chile Italy Czech Republic Mexico Netherlands Greece Argentina Hong Kong-China Brazil Israel FYR Macedonia Indonesia Switzerland Albania SAM PLE AVG Korea Portugal Russian Federation Thailand Latvia United States United Kingdom Spain Canada Australia Ireland New Zealand Denmark Norway Sweden Iceland Finland 0 10 20 30 40 50 60 70 80 90 100 Source: Own elaboration based on PISA (2005) Based on the cluster analysis previously discussed, the countries comparable to Argentina are: Chile, The Czech Republic, Poland and Hungary. Among this group, only Chile ranks worse than Argentina, both in average test score and in Quality (after controlling by student socioeconomic characteristics). Adding the spending per student in primary and secondary level, Argentina is the country that spends the less. Poland, with the highest spending, has 1.5 times more spending per student. The Czech Republic, on the other hand, with a lower public expenditure than Argentina, and with a lower private sector share, it is able to obtain better quality. How these countries with similar educational effort and development level are able to obtain a better performance? The answer seems to be in the between school variation. The four countries have a much higher proportion of the total variance explained by between school variance, what shows that the better performance is at the expense of more inequality across schools. In some sense it seems Argentina is paying a price in 90 terms of aggregate quality for having a more egalitarian (or more equally mediocre) educational system. Table 37. Percentage of variance in student performance in reading, mathematical and scientific Poland Czech Republic 5,790 15,163 97.2 Hungary Argentina Chile GNI per capita (2000) 4,570 GDP per capita ppp (2000) 10,061 Net Enrollment ratio primary 96.6 Net Enrollment ratio 90.2 secondary repetition rate 0.8 school life expectancy 14.7 Exp/GDP 4.8 Current spending per student (% of p.c.GDP) Primary level 22.5 Secondary level 19.9 Tertiary level 17.3 Private Enrollment Share Primary 0.8 Secondary 4.5 4,600 12,264 87.8 85.3 7,470 12,148 99.3 79.1 4,840 9,188 89.6 . 2.1 14.2 4.9 5.9 15.6 4.6 2 12.9 3.9 1.1 19 20.2 34.2 12.3 15.7 17.7 14.4 14.8 19.4 11.7 21.6 31 5.1 7.2 20 12.3 45.5 49.7 0.9 5.7 Average Score in Math St dev of Avg. Score in Math Quality in Math 464.3 100.3 224.2 486.1 96.8 219.3 404.0 113.4 151.1 398.1 94.8 139.6 499.1 98.2 233.6 Proportion of between-school variance 62.7 65.5 49.8 55.8 54.0 4 Source: Own elaboration based on PISA (2005) Next we include student and school characteristics in our two-levels HL model (as covariates affecting only the intercept), we can see that a large part of the between-school variance in Argentina is due to a compositional effect, since 55% of the between-school variance is explained by the average student characteristic in the school. This is close to the world average and OECD average, but since the between-school variance in Argentina is relatively more important, it means that 27.5% of the total variance in test scores is explained just by different school compositions. 91 Table 38. Variance Decomposition. Reading Literacy Achievement As % of total variance School Peer Characteristics Between-school variance School School Climate, Context Policies and Resources Unexplained Within School Variance High Income Countries Australia Austria Belgium Canada Denmark Finland Germany Greece Hong Kong-China Iceland Ireland Israel Italy Netherlands New Zealand Norway Spain Sweden Switzerland United Kingdom Average HI 9.7 33.7 38.4 9.3 8.9 1.1 21.4 27.6 10.0 1.6 7.2 13.1 15.8 37.4 8.4 3.3 9.1 5.3 15.6 9.6 14.3 5.1 11.4 11.4 2.3 1.1 0.2 26.1 5.5 13.4 0.2 5.9 13.6 15.8 8.8 3.9 0.6 3.8 1.0 8.6 10.2 7.4 1.4 4.8 6.0 1.2 1.3 1.2 4.2 3.0 15.3 2.0 0.4 1.8 7.6 1.6 1.1 1.1 1.1 0.7 7.4 3.2 3.3 4.1 10.2 4.2 7.9 4.4 5.2 7.1 14.1 9.1 4.3 4.5 17.2 14.7 3.6 2.7 4.1 7.2 1.9 9.4 6.1 7.1 79.7 39.9 40.0 79.3 84.3 92.3 40.6 49.8 52.2 91.8 82.0 54.8 45.5 48.0 83.9 90.9 78.8 91.2 59.0 71.0 67.8 Upper-Middle Income Countries Argentina Brazil Chile Czech Republic Hungary Korea Mexico Poland Average UMI 27.4 25.7 36.3 32.4 25.6 22.0 28.3 31.4 28.6 13.0 9.4 11.2 13.0 27.5 3.8 14.9 10.0 12.8 4.0 3.3 3.3 2.2 3.3 5.7 2.7 9.4 4.2 6.0 8.9 5.0 5.9 9.2 6.4 7.5 11.9 7.6 50.2 53.2 44.2 46.0 34.5 62.1 46.6 37.3 46.8 Low-Middle Income Countries Albania Bulgaria FYR Macedonia Latvia Peru Russian Federation Thailand Average LMI 15.2 12.7 19.6 11.5 32.8 5.2 12.0 15.6 17.2 32.3 12.0 6.0 15.2 10.7 6.3 14.3 1.6 5.2 7.6 2.7 2.4 4.4 1.3 3.6 6.0 7.5 5.3 9.7 10.3 16.6 12.0 9.6 60.0 42.3 55.5 69.8 39.3 63.1 68.3 56.9 Low-Income Country Indonesia 15.9 7.5 4.9 15.5 55.8 17.97 13.67 7.81 60.94 27.4 25.7 36.3 28.3 32.8 13.0 9.4 11.2 14.9 15.2 4.0 3.3 3.3 2.7 2.4 6.0 8.9 5.0 7.5 10.3 Total Sample Latin America Argentina Brazil Chile Mexico Peru Source: Own elaboration based on PISA (2005) 50.2 53.2 44.2 46.6 39.3 The effect of the peer characteristics on the achievement of the student has been related in the literature to the existence of externalities in production and sorting. First, better 92 peers can have a positive impact on the individual student achievement (what is known in the literature as peer-group effect). Second, it is possible that a better group of students attracts better teachers (i.e. there is positive assortative matching between teachers and schools). Nevertheless, part of variation assigned to the peer student characteristics might be due to the interaction of student characteristics and school (unobservable) characteristics. Since the allocation of students among schools is not random, unobservable characteristics of the school that interact with the peer characteristics are going to be captured, in part, in this variation. We cannot estimate with this exercise the peer-group effect on achievement, but later in this paper we will use a particular characteristic of the Argentine system which allows us to identify this effect, and separate the peer student characteristic variation in peer-group effect and the interaction of peergroup effect and unobservable school characteristics. In terms of policy variables at the school level, the proportion of the total variation explained by climate, policies and school resources is just 4% of the total student variation, which is small, but larger than the group of comparators (except for Poland) what shows that Argentina has some room to improve its quality of education with policies at the school level. In terms of the comparators, for all the countries the proportion of the variance explained by the peer student characteristics and school context is much larger than in Argentina, what confirms that sorting across schools is higher in these countries, what might be related with a more differentiation (or an unequal educational system). Table 39. Decomposition of the between school variation in explained and unexplained factors Poland Hungary Argentina Chile Average Score St dev of Avg. Score Quality 464.3 100.3 224.2 486.1 96.8 219.3 404.0 113.4 151.1 398.1 94.8 139.6 Czech Republic 499.1 98.2 233.6 Proportion of between-school variance Explained by: Peer Student Characteristics School Context School Climate, Policies and Resources Unexplained 62.7 65.5 49.8 55.8 54.0 31.4 10.0 25.6 27.5 27.4 13.0 36.3 11.2 32.4 13.0 9.4 11.9 3.3 9.2 4.0 6.0 3.3 5.0 2.2 5.9 Source: Own elaboration based on PISA (2005) 93 VI.2. School Factors Related to Quality of Education In Table 40 we show the estimated coefficients (shrinkage estimators) for the variables included in our HLM model. Most of the coefficients have the expected sign. In terms of student characteristics, SES is positively related to test score, girls perform significantly better than boys, and if the student is older or immigrant the score is lower. Table 40. Estimated coefficients for school level in a 3-levels HLM model Student characteristics Grade level (deviation from country mode) Age In vocational program (ISCED 2B, 2C, 3B or 3C) Parents’ occupational status (HISEI) Female student Immigrant School context School average parents’ occupational status (HISEI) School type (reference category = public schools) Independent private schools Government-dependent private schools School location (reference category = Town 15.000 – 100.000 inhabitants) Village, less than 3.000 inhabitants Small town, 3.000 – 15.000 inhabitants City, 100.000 – 1.000.000 inhabitants Large city, more than 1.000.000 inhabitants School climate Index of disciplinary climate Index of teacher support Index of achievement press Index of teacher-student relations Index of students’ sense of belonging at school Index of principals’ perceptions of teacher-related factors affecting school climate Index of principals’ perceptions of student-related factors affecting school climate Index of principals’ perceptions of teachers’ morale and commitment School policies Instructional time Index of monitoring of student progress Index of school self-evaluation Student’s performance is considered for school admission Study program for 15-year-olds is based on students’ academic record Study program for 15-year-olds is based on students’ placement exams Transfer of low achievers to another school: likely very likely Performance information is communicated to parents Performance information is communicated to school principal Performance information is communicated to local education authorities Index of school autonomy Index of teacher autonomy School resources School size Index of the quality of schools’ physical infrastructure Index of the quality of schools’ educational resources Proportion of computers available to 15-year-olds % of teachers with an ISCED 5A qualification in the language of assessment Index of teacher shortage Student-teaching staff ratio Professional development Source: Own elaboration based on PISA (2005) Regression coefficient Robust Standard Deviation 25.77 -1.86 -18.72 13.31 22.4 -22.06 0.22 0.16 0.76 0.17 0.32 0.81 24.6 0.55 -6.88 5.32 2.16 1.19 0.28 0.91 -0.94 -3.39 1.57 1.23 1.22 1.86 7.64 -3.08 0.3 -2.18 7.91 -4.21 9 1.9 0.51 0.61 0.52 0.59 0.52 0.58 0.57 0.45 0.95 1.1 0.6 2.83 -0.15 0.75 0.81 0.71 0.72 0.56 0.59 0.54 5.79 11.98 0.92 -0.4 -0.22 -2.03 0.37 1.2 1.85 0.6 0.57 0.45 0.56 0.43 1.87 -1.53 2.73 -0.3 3.34 0.6 0.62 -0.59 0.57 0.49 0.53 0.46 0.56 0.47 0.67 0.44 94 Based on the international evidence, in which of these variables Argentina is underperforming? Table 41 analyses the situation of Argentina in those factors related to School Climate that have a statistically significant impact on quality of education according to the HLM estimation. We separate the factors in those that have a positive impact and those that have a negative impact. In terms of the positive impact factors, Argentina has an average index for both variables above the world average, what suggests Argentina should have a better than the average score given these characteristics. Among the countries selected as benchmark Argentina has also a relative good position, ranking first in terms of Disciplinary Climate and Second (right after Chile) in Students’ sense of belonging at school. Table 41. School Climate Factors POSITIVE IMPACT Index of disciplinary climate World Argentina Chile Czech Republic Hungary Poland Mean St. Dev -0.022 0.995 0.368 0.909 0.325 0.692 -0.143 1.020 -0.230 0.987 0.060 0.805 Index of students’ sense of belonging at school Mean St. Dev World -0.057 0.981 Argentina 0.183 1.067 Chile 0.196 1.096 Czech Republic -0.290 0.775 Hungary 0.140 0.972 Poland -0.198 0.988 NEGATIVE IMPACT Index of teacher support World Argentina Chile Czech Republic Hungary Poland Mean St. Dev 0.093 0.995 0.205 1.079 0.303 0.976 -0.499 0.798 0.054 0.882 0.300 0.885 Source: Own elaboration based on PISA (2005) 95 In those factors that have a negative impact (teacher support), Argentinean average is above the world’s average, what suggests its average score should be below the average, but in line with the average for the set of comparators. In terms of school resources, Argentina has a qualification of teachers below the world average and well below the set of comparators, what suggests that this is a problem in the country. The same is not true for educational resources, what shows that Argentina is in a relatively good position in terms of this variable. Table 42. School Resources Factors % of teachers with an ISCED 5A qualification in the language of assessment Mean St. Dev World 0.818 0.314 Argentina 0.281 0.361 Chile 0.647 0.444 Czech Republic 0.883 0.226 Hungary 0.984 0.109 Poland 0.783 0.253 Index of the quality of schools’ educational resources Mean St. Dev World 0.332 1.171 Argentina 0.521 1.115 Chile 0.289 1.049 Czech Republic -0.216 1.004 Hungary -0.503 0.911 Poland 1.287 1.118 VI.3. Oaxaca-Blinder Decomposition In this section we decompose the explained score gap between Argentina and a set of benchmark economies. The group of benchmark countries similar to Argentina in terms of development and educational effort is: Chile, the Czech Republic, Mexico, and Poland. The group of countries with similar culture includes: Spain and Italy. And the group of high quality countries is: Finland, Great Britain and Sweden. The results for the similar countries are shown in the next table. 96 Table 43. Oaxaca-Blinder decomposition for Similar development countries Czech Republic Mexico Endow Returns Inter Endow Returns Inter Poland Chile Endow Returns Inter -135.2 0.6 Endow Returns Inter Student characteristics Age -1.2 Gender -1.8 -188.8 0.8 -5.5 -2.5 -127.0 1.1 -1.2 0.6 -2.8 -10.3 1.6 -3.1 -1.0 1 if foreign -0.1 # of siblings 5.0 0.2 -142.8 -0.1 0.2 -1.7 -9.3 0.9 0.1 0.1 -0.8 -0.1 -0.3 0.0 8.3 -3.1 -3.5 0.4 0.1 3.5 -0.1 0.0 -0.3 0.2 0.3 5.0 -1.3 0.8 8.3 -0.5 Position of the child within brothers and sisters Oldest (excl.) Middle -0.7 -1.9 -0.6 0.3 1.3 -0.1 -0.5 0.5 0.1 0.2 2.1 -0.2 Youngest 1.7 -1.1 0.6 -1.3 1.6 0.7 1.0 1.9 -0.6 -0.2 0.6 0.0 Primary complete 4.4 32.4 -31.5 -0.8 6.6 1.2 4.5 4.6 -4.5 2.4 16.8 -8.8 Secondary incomplete 0.3 17.3 -12.8 -0.1 2.2 0.4 0.2 13.0 -6.3 -0.1 7.4 2.5 Secondary complete 0.0 0.0 38.8 0.0 0.0 2.4 0.0 0.0 21.3 0.0 0.0 10.3 Mother’s education Primary incomplete (excl.) Higher Ed. incomplete 3.7 30.4 22.1 -3.9 2.8 -2.1 4.1 22.0 17.6 0.3 15.2 1.0 Higher Ed. complete -1.8 27.9 -8.9 -2.4 0.9 -0.4 -0.5 21.2 -1.8 -1.2 13.9 -3.0 0 if single parent household 0.4 -0.8 -0.1 -0.2 -2.8 0.1 0.5 -4.8 -0.6 -0.4 4.8 -0.4 -0.3 -4.1 0.3 2.7 -0.5 -0.3 0.6 5.2 0.8 4.0 8.8 8.8 7.8 -0.9 -0.9 16.2 -2.5 0.5 5.6 0.5 0.6 8.1 0.9 -49.8 -3.2 -4.8 29.2 6.1 0.5 86.3 -1.8 -6.6 94.7 27.2 2.7 -0.6 -4.8 18.4 0.5 25.9 15.1 -0.1 -4.5 School characteristics School size (# of st.) 1 if Big town -0.6 Hours of teaching -1.5 Teacher qualification 17.5 0.4 21.0 # of computers per student 10.3 -8.3 -7.2 -0.9 0.8 -0.1 13.5 -11.7 -13.2 -3.6 0.5 -0.2 Index of Student behavior -4.2 -8.5 -2.6 -11.0 8.5 6.6 -8.9 -29.8 -18.9 -7.9 -10.7 -6.0 Index of shortage of teachers -5.0 -17.7 11.4 1.4 -6.5 -1.2 -3.7 -9.5 4.6 -2.1 -9.8 2.7 Index of building quality Index of educational materials availability 6.9 30.6 -18.8 -3.5 14.1 4.4 -1.9 33.7 5.8 2.8 12.7 -3.2 46.7 -14.4 -8.3 18.3 3.4 6.3 24.0 -3.4 4.7 24.8 -2.6 13.8 Intercept Total 103.6 46.7 19.1 44.1 -8.4 -40.3 -0.7 -45.1 16.4 33.9 -13.8 25.0 -104.4 7.0 -58.2 25.2 From the student level characteristics we are particularly interested in the mother’s education, which is a proxy of the socioeconomic level of the students. In terms of the endowment effect Argentina has: a) lower endowment in terms of student’s SES compared to the Czech Republic and Poland, b) higher than Mexico, and c) relatively similar to Chile (with more students than Chile in the low level, and more students in the high level). The policy related variable is the return effect, that shows how efficient is each country compared to Argentina when resources are identical. A positive number indicates that the benchmark country has a slope larger than Argentina, what is interpreted that the student with that level of parent’s education is able to obtain better 97 scores than Argentina. Note that for all the countries and all the educational levels the numbers are all positive. The differences in the slopes are higher in the extremes (lowest and highest level of mother education). The Czech Republic and Poland show the highest differences, followed by Chile. Mexico has slopes which are not significantly different than Argentina. For instance, the Czech Republic is able to obtain on average 4.4 points more than Argentina because they have a lower proportion of students with mothers’ education with primary complete, and 32.4 points because Poland has a higher slope than Argentina for those students. For the highest level of mother’s education, Argentina obtains 1.8 point more because it has a larger proportion of students in this category than the Czech Republic, but the Czech Republic obtains 28 points more because it has a higher slope. In all the cases the interaction term is high; if we add the three effects, all the countries, except for Mexico, have a positive difference with Argentina, what means that it does not matter what SES has the student, these countries are able to obtain better results. The overall effect is larger for more educated mothers. For instance, adding the three effects the Czech Republic has 5 points more than Argentina for low educated mothers (primary complete and secondary incomplete), but 56 point more for mothers with higher education studies. Poland shows a similar pattern, between 5 and 7 points more for low educated mothers, but 44 points more for mothers with higher education. Chile is the only country with a relatively homogenous positive overall difference (between 10 and 17 points for all the educational levels). These results confirm our previous hypothesis, that the Czech Republic and Poland have better results for all the students, it does not matter their SES, but the significant difference are in the more advantageous students. Argentina, therefore, as a more mediocre overall performance, but with less heterogeneity by SES than these countries. Compared to Chile, both countries have the same pattern of inequality on performance by SES, but Chile performs better than Argentina, mainly because it is able to achieve a higher efficiency (slope). In terms of school variables, hours of effective teaching per year seems to be the most important variable to explain the differences, but more than the stock of hours the difference is due to a slope or return effect. All the countries, except for the Czech 98 Republic, have a larger slope that Argentina, what means that they are able to obtain better scores with the same number of hours (in other words, they are more efficient to transform hours of teaching in scores). Poland has 86 points more than Argentina, and Chile 95 points more just because they have a higher slope. This difference is very large, is almost one standard deviation in the Argentinean score at the student level. If Argentina is as efficient as Poland in terms of transforming hours of teaching in scores, it would have the same average score. And if Argentina is as efficient as Chile in terms of transforming hours of teaching in scores, it would have almost 100 points more than Chile in its average score. Note that Argentina has an expected average score 26 points larger than Chile, what means that even if Argentina is much less efficient than Chile in transforming hours of teaching in scores, it is able to catch up in the final score with other aspects that are favorable to Argentina. Unfortunately, we do not how Argentina is able to match Chile, since Chile has better endowment and slopes for all the variables included, and the favorable difference for Argentina is in the unobservable variables, captured by the intercept, which is 104 points larger in Argentina. A similar result is found for school infrastructure (an index variable representing the quality of the building infrastructure). Argentina has not large difference in terms of endowments, but the difference is in how that infrastructure is used (the slopes). The Czech Republic and Poland obtain 31 and 34 points more than Argentina just because they are able to transform the relatively similar school infrastructure in scores. In terms of educational materials (an index measuring the availability of materials such as books, boards, furniture, etc.), all the countries except for Mexico, have better endowment, but again the difference is in how those educational materials are used. For instance, the Czech Republic has 14 points more than Argentina because they have more educational material on average, but it has 47 points more because they are more efficient using that material. For computers per student, another variable related to school resources, Argentina has a positive difference (i.e. less endowment) compared to the Czech Republic and Poland, 99 but is able to use those poorer resources more efficiently (the return effect is negative), perhaps the only positive aspect of Argentina. In addition to school resources variables (educational material and computers per student) the other variable that has a very important endowment effect is teacher qualification. Argentina has on average less qualification (the endowment effect is positive) but it uses the resource in a similar way than the other countries (the slopes are not significantly different). Improving the teacher qualification Argentina can reduce the score gap with the Czech Republic and Poland in approximately 18 points, which is approximately 31% and 40%, respectively, of the explained differences between these countries and Argentina. It is important to point out that the shortage of teachers in Argentina is not a problem (the endowment effect is negative, what shows that on average it has a lower shortage of teachers), and neither how Argentina deals with its shortage. This has a clear policy implication: Argentina does not need more teachers, but it needs more highly qualified teachers. Qualified teachers in Argentina do their job as well as qualified teachers in other countries, but Argentina has less qualified teachers. Argentina needs to make the teaching job more attractive and increase the level of qualification, probably making teaching a university degree (instead of tertiary level instruction as it is now). The teachers in Argentina that have a high qualification is because they choose to do higher degree studies (masters or professional careers), not because the state is requiring the teachers to have a high minimum level of qualification. We think is important to pay attention to the student behavior variable, what represents how bad the students behave according to the school director (and the standards these directors demand). Argentina has on average a better student behavior (negative endowment effect) and also has a better slope (return effect), what shows that Argentina is able to better transform the relatively better behavior in more score points. It is not easy to interpret this result, but if we think that the student behavior at the school is related to how important the students consider their educational process, it shows that the problem in Argentina is not the lack of interest of the students, on the contrary, it seems 100 the good behavior of the students and their effort is partially compensating the poor quality of education that there are receiving at the school. Finally, the intercept presents large values for all the countries, reflecting an important degree of unobservable differences explaining the gaps, but the sign depends on which country we choose to do the benchmarking, what suggests that these hidden unobservable elements are probably different in each case. The results of the Oaxaca-Blinder decomposition for the second benchmarking group, the similar culture countries, are shown in the next table. Table 44. Oaxaca-Blinder decomposition for Similar Culture countries Endow Student Characteristics Age Gender 1 if foreign # of siblings -1.2 -1.6 -0.5 6.2 Position of the child within brothers and sisters Oldest (excl.) -0.7 Middle 2.0 Youngest Italy Returns Inter Endow Spain Returns Inter -82.8 -3.4 0.0 -11.4 0.4 0.3 0.1 5.1 0.1 -2.6 -0.6 4.8 68.9 -5.8 0.0 4.9 0.0 0.9 0.1 -1.7 0.1 -2.2 -0.3 -1.1 1.8 0.0 1.3 1.1 7.2 0.6 -0.6 -0.1 0 if single parent household -0.2 0.5 3.4 5.9 Mother’s education Primary incomplete (excl.) Primary complete Secondary incomplete Secondary complete Higher Ed. incomplete Higher Ed. complete 3.1 -0.4 0.0 1.0 -1.7 14.3 6.0 0.0 8.8 6.0 -9.8 6.0 4.3 1.8 -1.8 -0.7 0.0 0.0 -1.8 -0.8 20.2 11.0 0.0 14.2 12.8 3.2 -0.4 3.5 -5.0 -1.7 1.2 0.6 -3.1 0.4 -7.7 13.8 -0.4 -1.6 14.9 -6.7 -83.5 0.7 -21.4 -13.4 -3.3 5.3 4.5 -0.7 -11.4 0.8 -11.7 -15.4 0.2 0.8 1.5 0.0 -2.0 0.4 -10.0 3.9 -4.7 1.5 -0.3 0.3 64.8 -1.5 2.2 -11.1 -5.6 9.8 -0.1 0.0 5.8 -1.7 1.6 -3.6 3.4 -1.3 12.9 0.0 22.2 34.8 192.1 66.9 -10.1 0.0 -39.2 13.1 0.0 2.7 40.5 -177.5 57.2 -11.9 0.0 -9.2 School Characteristics School Size 1 if big town # of teaching hours per year Teacher Qualification Student Behavior # of Computer per student Index of shortage of teachers Index of building quality Index of educational materials availability Intercept Total 101 In terms of student SES, Italy and Spain have a relatively similar endowment than Argentina, but the important difference is in the efficiency (return effect) particularly for the students with lowest SES. In terms of school characteristics, the most important variable is the availability of educational material, in terms of endowments but more importantly on how that endowment is used. For the number of computers per student, we find a similar result as before, Argentina has a poorer endowment, but it uses that endowment much more efficiently. For the quality of the building, as before we found no large difference in terms of endowments but large differences in terms of how those endowments are used: both Italy and Spain are remarkably more efficient. Since this variable only measures “availability”, part of the slope effect might be related to differences in quality. Since Italy and Spain are richer, it is expectable that they have more and better quality materials. The number of teaching hours per year is not so different between these countries, but Argentina is much more efficient than Italy in using those hours, but much less efficient than Spain. It is unexpected that teaching qualification has not significant differences for both countries compared to Argentina, neither in terms of endowment nor in terms of how that endowment is used. For the rest of the variables we find a similar result, there are no large differences. Finally, the intercept is larger here than when we compared Argentina with similar development level countries, large and positive for Italy, and large and negative for Spain. Surprisingly, Argentina is much more similar to these countries in terms of the observable variables, both in endowments and how the endowments are used, at least according to our own prior beliefs. Is it the case that the strong cultural influence of both 102 Italy and Spain is reflected in the Argentinean educational system? Since Italy and Spain are underperformers when compared to similar income level countries, if this hypothesis is true, Argentina inherited some of this underperformance as part of the overall cultural baggage. The comparison with the third group of countries is shown in the next table. In general we find the same qualitative results as when we compare Argentina with the Czech Republic or Poland. For instance, the high-score countries have better qualified teachers (endowment effect) but with the same efficiency as Argentina (almost null return effect). They have more computers per student than Argentina, but Argentina is more efficient in using the computers available. In terms of building quality and availability of materials, the differences are in the slope more than in the endowment. The three countries have a better slope for low SES student and high SES students. And a very large proportion of the difference is represented by the intercept, what shows that unobservability is an issue. 103 Table 45. Oaxaca-Blinder decomposition for High performing countries Age Sex 1 if Foreign # of Siblings Finland Endow Returns Inter -3.4 -37.5 0.4 -2.2 10.3 -1.2 -0.4 -0.1 -0.2 2.3 6.6 -1.1 Great Britain Endow Returns Inter -3.2 -76.4 0.9 -2.3 -4.4 0.6 -1.5 0.2 1.2 2.2 -0.6 0.1 Sweden Endow Returns Inter -1.2 67.2 -0.3 -3.1 3.1 -0.5 -2.4 -0.1 -1.0 1.1 6.4 -0.5 Position of the child within brothers and sisters Oldest (excl.) Middle Youngest 0 if single parent household -0.5 0.5 -1.3 -0.3 0.8 -0.1 -0.2 0.6 0.1 1.8 0.0 -0.3 -0.3 0.1 -1.9 -0.1 -0.2 0.0 12.8 0.0 -0.2 19.1 -0.7 0.0 9.1 -0.1 2.7 0.1 0.0 -1.9 1.4 9.3 -5.0 2.4 -0.2 0.0 6.6 7.3 -2.8 3.5 1.0 4.3 0.1 0.0 -3.7 5.3 20.6 -19.6 10.6 -1.5 0.0 27.6 25.9 -18.6 14.6 14.0 4.3 0.1 0.0 -0.2 7.6 -1.0 -2.0 1.9 -0.6 -11.6 2.3 3.4 -0.4 -8.6 -5.9 -7.3 0.5 -0.5 -1.8 2.9 0.1 -0.4 0.0 20.7 -13.2 0.6 34.1 7.8 7.6 -1.6 17.7 -8.7 8.4 0.6 -0.3 -14.9 -27.7 -17.1 0.1 19.1 -10.4 41.4 -0.2 3.3 -0.2 -9.1 2.5 24.4 -13.7 -25.9 24.4 -16.9 -34.2 23.4 -3.0 -14.5 3.9 0.8 -5.0 -0.5 0.4 -10.2 -0.5 -1.1 18.0 1.8 -3.5 20.2 6.3 -0.3 9.2 0.3 6.3 46.2 -6.9 3.5 23.5 -1.9 9.1 39.1 -7.9 115.1 0.0 0.0 -139.9 0.0 29.6 58.3 13.3 114.1 -64.9 45.0 0.0 Mother’s education Primary incomplete (excl.) Primary complete Secondary incomplete Secondary complete Higher Ed. incomplete Higher Ed. complete School Characteristics School Size 1 if big town # of teaching hours per year Teacher Qualification Student Behavior # of Computer per student Index of shortage of teachers Index of building quality Index of educational materials availability Intercept Total 9.4 0.0 37.0 16.4 -15.5 8.2 -1.7 0.0 6.3 13.0 -0.5 8.2 11.2 -10.0 -19.6 65.3 -37.7 Grouping Variables In an attempt to summarize the effects already discussed we group variables and compute the overall effect for each group. The most important observable differences are: i) Although Argentina tends to have a poorer endowment in terms of students SES (except for Mexico), the important difference for this variable is in the slope effect. Argentina has a similar slope as developed countries, but similar income level countries, particularly the Czech Republic and Poland, have a much better 104 slope than Argentina. This explains how these two countries, poorer than Finland, Sweden or Great Britain, are able to obtain similar average score: they are more efficient in producing high score with low level SES students. ii) Argentina shows a lack of qualified teachers compared to all the countries. iii) Argentina has poorer school resources, poorer quality, and uses them more inefficiently. Table 46. Oaxaca-Blinder decomposition Czech Republic Endow Returns Mexico Inter Endow Returns Poland Inter Chile Endow Returns Inter Endow Returns Inter Student charact. 3.2 -189.6 -1.6 -10.7 -136.9 3.2 0.2 -133.7 -1.6 -1.4 -136.1 0.1 Student SES 6.7 108.1 7.6 -7.2 12.5 1.6 8.4 60.7 26.4 1.4 53.4 2.0 School charact. -0.9 3.7 -0.6 1.9 15.8 -2.8 1.1 10.8 1.3 4.6 16.9 9.6 Instructional time -1.5 -49.8 -3.2 -4.8 29.2 6.1 0.5 86.3 -1.8 -6.6 94.7 27.2 Teacher Qualification 17.5 0.4 21.0 2.7 -0.6 -4.8 18.4 0.5 25.9 15.1 -0.1 -4.5 School Climate -4.2 -8.5 -2.6 -11.0 8.5 6.6 -8.9 -29.8 -18.9 -7.9 -10.7 -6.0 School Resources 26.0 51.2 -29.0 -11.2 26.7 6.5 14.1 36.5 -6.2 1.8 28.2 -3.3 Constant 103.6 Total 46.7 19.1 44.1 -8.4 -40.3 -45.1 -0.7 16.4 33.9 -13.8 Italy Returns Student SES School charact. Instructional time Teacher Qualification School Climate School Resources Inter School charact. Instructional time Teacher Qualification School Climate School Resources 3.5 2.3 77.6 -0.8 3.8 1.5 -0.1 -0.1 -3.1 -83.5 -11.4 -2 64.8 5.8 0.4 0.7 0.8 0.4 -1.5 -1.7 -7.7 -21.4 -11.7 -10 2.2 1.6 2.1 35.1 0.4 -3.3 58.1 -0.5 24.7 23.4 -24.5 13.8 33.6 -13.4 -39.2 2.7 66.9 -177.5 57.2 -9.2 Great Britain Inter Endow Returns Sweden Inter Endow Returns Inter -8.4 22.6 -9.7 -2.5 -0.5 1.7 -4.6 6.0 3.0 -1.6 -60.3 71.6 -14.5 8.4 1.7 2.0 -6.8 0.6 -5.8 11.8 -2.3 0.1 20.7 -13.2 26.5 0.6 7.8 36.1 34.1 7.6 -27.1 17.7 -8.7 25.2 -0.3 -27.7 21.8 -14.9 -17.1 -30.3 19.1 -10.4 32.6 -64.9 45.0 9.4 29.6 58.3 25.2 Inter 8.2 192.1 Returns -58.2 -3.6 2.3 -3.0 Constant Total Returns -87.8 22.2 Endow Endow 4 Spain Student char. Student SES 7.0 1.8 Constant Total 25.0 Spain Endow Student charact. -104.4 115.1 13.3 37.0 114.1 105 VII. A Hierarchical Lineal Model with PIRLS A drawback of PISA is that it does not include the teacher level. PIRLS instead have a rich set of variables about the teaching methodology obtained from a survey to teachers. With PIRLS we can analyze three levels: students, teachers/class, and school. Argentina ranked relatively bad in PIRLS too, it is well below the average, close to Colombia (the other Latin-American country included in the study) and far away from similar income level countries such as Hungary and the Czech Republic (see Table 47). . It ranks bad in term of the overall reading achievement test, and in each of the blocks considered (reading for Literacy and Informational Purposes, see Table 48). Comparing the percentage of students that reaches PIRLS international benchmark, only 17% of the Argentine students taking the exam were above the median (see Table 49).This is above Colombia (14%) which has a slightly better overall tests, what shows that in Argentina quality is more unequally distributed when compared to Colombia. Similar income level countries such as Hungary and the Czech Republic have a much larger proportion of students over median (71% and 68% respectively). In Argentina even the top students are underperforming. In general students show big problems to understand basic texts, and the achievement is well below the expected level for a country with its income level and overall educational indicators. 106 Table 47. Distribution of Reading Achievement Source: PIRLS 2001 International Report 107 Table 48. Achievement in Reading for Literacy and for Informational Purposes Source: PIRLS 2001 International Report 108 Table 49. Percentages of Students Reaching PIRLS International Benchmarks in Reading Achievement Source: PIRLS 2001 International Report The poor performance in understanding basic text is surprising since other related indicators are not so bad. For instance, 50% of the parents qualify as doing high Early Home Literacy Activities, a ratio above Norway, Germany or Sweden. Most of the countries with similar scores in the Reading Test as Argentina have a ratio well below (for instance, Colombia 40% and Turkey 26%), but it is also the case that the countries in the benchmark group that outperform Argentina as Hungary and the Czech Republic have a better index. 109 Argentina has a very low proportion of students where Spanish is not the mother Language, and a very small proportion of the students’ parents are foreigners, what this is not a disadvantage neither. A significant difference between Argentina and the average is the high proportion of students with poor educational resources at home (Index of Home Educational Resources). According to this index 40% of the students have low resources, a ratio only worse in Turkey (41%), Colombia (48%), and Morocco (76%). Something similar is observed for the number of books at home, where only 9% of the students have more than 100 books, compared to the world average of 35%. Similar income countries such as Hungary and the Czech Republic have 62% and 54%, respectively. These two countries have also a very low proportion of students with low Home Educational Resources (4% and 2%, respectively). Comparing the children books, in Argentina only 6% of the students have more than 50, whereas in Hungary and the Czech Republic 44% and 46%, respectively. This evidence seems to show that Argentina has been not putting the same educational effort at home than other similar income level countries did. To what extend the household decisions and conditions are affecting the student performance? 600 Average Test Score for LOW EHLA students Average Test Score of HIGH EHLA students Figure 31. Average Reading Achievement and Early Home Literacy Activities 550 500 450 AR 400 350 0 20 40 60 80 600 550 500 450 400 AR 350 100 0 % of students that have HIGH Early Home Literacy Activities 20 30 40 50 700 600 Average Test Score ARG Average Test Score 10 % of students that have LOW Early Home Literacy Activities 550 500 450 400 650 ARG 600 550 500 450 400 350 350 0 30 40 50 60 70 % of foreing parents 80 90 100 10 20 30 40 % students with Index of Home Educational Resources (HER) 110 To understand the role of socioeconomic characteristics we analyze “quality of education” (i.e. after controlling for student’s characteristics). The first important result is that after controlling for the student socioeconomic characteristics the differences across countries reduces significantly. The average quality for the entire sample increases to 542 and the standard deviation falls to 67.7 (instead of a mean of 500 and a standard deviation of 100 for the test score). Argentina changes from 31 out of 35 countries (when ranked by average test score) to 26 out of 35 (when ranked by quality), showing that a more disadvantage socioeconomic level is affecting its ranking. Its position now is very close to Hungary (24) and some developed countries such as New Zealand (28) or Singapore (25). For Colombia, instead, its ranking did not change (still is 30th), the same for Belize (35) and Kuwait (33). Eliminating household income and parents’ education (which might be related with private school enrollment) the ranking does not change much, Argentina is 27 out of 35. It is interesting to note that in PISA we did not find a change in the ranking after controlling by SES but we do find an improvement in the ranking in PIRLS. This is related with our previous finding that SES adjusted average score changes more in PIRLS than in PISA. The SES slope was also higher in PIRLS than in PISA, what suggest that SES and difference among the students’ SES have a more important role in the early educational process. Another important result is related to the heterogeneity or dispersion of quality of education between students (what we measure as the coefficient of variation). According to the test score, Argentina ranks 4 out of 35 in terms of lower coefficient of variation, showing low heterogeneity, but after controlling for socioeconomic characteristics Argentina ranks 30 out of 35 (29 if we exclude income and parents’ education), what shows that Argentina not only has a relatively poor quality of education but quality is very heterogeneously distributed and this is not due to differences in income level. 111 VII.1. Variance Decomposition Decomposing the total variance in between-schools and within school by country, Argentina is 7 out of 35 countries in terms of highest between-school variation. For all the countries, the between-school variation share on total variation is, on average, 36.3% but for Argentina it is 49.4%. This level of between-schools variation is similar to the one found in PISA (50.4%). But in PISA we found that the benchmark countries have a higher between-school variation than Argentina, and now we find the opposite. In fact Hungary and the Czech Republic are now among the countries with lowest betweenschool variation (3th and 7th respectively). Colombia, the only Latin-American country in the benchmark group in PIRLS has also a very high between-school variation, higher than Argentina. How should we interpret these results? Argentina is providing a more unequal quality at primary school, but less differentiation in secondary school. In this sense, the inequality in primary school is definitely a negative aspect of Argentina. But the low inequality in secondary school is not necessarily a positive aspect. We are measuring a differentiated product in just one dimension: reading, and probably the students in Hungary and the Czech Republic attending technical schools (preparing students for the job market), are developing other dimensions which are not measured here. In Argentina secondary schools are not as differentiated, what might be reasonable to expect less between-school variation. The important result is that Hungary and the Czech Republic, even with more differentiation, have an overall performance in this unique dimension much better than Argentina, even for the students who are in technical schools. 112 Figure 32. Between and within school variation As % of Total Variance Between-School Variation Within School Variation Russian Romania Macedonia, Colombia Norway Belize Iceland Argentina Slovenia Lithuania Iran, Islamic Morocco Bulgaria New Zealand Sweden Italy Greece Slovak Republic Russian Kuwait Latvia England Canada Germany Hong Kong, Israel Moldova, Rep. United States Turkey Czech Republic France Cyprus Singapore Hungary Netherlands Scotland 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% In PIRLS we can decompose the overall variation in schools and classes. We estimate a four-level HLM model for the entire sample with the following levels: country, school, class and student. Once these levels are added to the analysis, the between-schools variation reduces a lot. The previously found between-schools variation for the entire sample (36.3%) now is broken in: 18% between-countries, 5% between-schools and 77% between classes. This means that the policies with more impact in terms of improving quality should be looked for at the country level differences (such as spending in education, organization of the overall system) and the class level (mainly teachers, student composition, and resources at the class level). At the school level, 52% of the variation is explained by school resources, 29% by school climate, 7% by school funding, and 7% by peer characteristics. At school level, only 5% is unexplained. At the class level, on the other hand, much of the variation is unexplained (88%), 7% is explained by peer characteristics, 4% by the methodologies that the teacher uses, and less than 1% by climate and class infrastructure. 113 VII.2. School Factors Related to Quality of Education In the next table we show the estimated (Bayesian) coefficients for our more general HLM model for the entire sample, in order to try to identify which variables are statistically significantly affecting the quality of education. We only show the school and class level variables, the one we are interested in. The dependent variable (student score in PIRLS) was standardized to have a zero mean and a standard deviation of 1. As with PISA, most of the variables are not statistically significant, although most of the variables have the expected sign. There are only three variables that are statistically significant at 1%: i) the proportion of students that come from disadvantaged homes (a proxy for school SES), ii) the proportion of the students that need remedial instructions in reading at 4th grade (a proxy of how the students arrives to grade 4th)19, and iii) the proportion of time that the teacher allocates to formal reading instructions. From these three variables the larger effect is observed for the last one, which is a class level variable, and it depends on how the teacher allocates the time internally (there is a lot of variation across schools and countries). An increase in one standard deviation in the proportion of time allocated to formal teaching reduces the score in 40% of its standard deviation, what definitely is a very large effect. The index of availability of resources at the school is significant at 10% only for the lowest level, which has a negative sign as expected. Something similar happens for the index of teacher shortage at school level, which has a negative sign only for the extreme case with a lot of shortage. In the case of school resources, a school with low availability of resources, compared to a school with high availability, has a lower score in approximately 15% of the standard deviation of scores. For teacher shortage, we find a similar effect, a difference of 16% of the standard deviation of test scores between the schools with no shortage and the schools with a lot of shortage. 19 We also estimate the model excluding this variable and the results do not change much. 114 Table 50. HLM Estimations results School Level Variables % of students from disadvantaged home 1 if the school has a library Index of Availability of school resources: High (excluded dummy) Medium Low Shortage of books in the school library Not at all (excluded dummy) A little Some A lot Shortage of teachers in the school Not at all (excluded dummy) A little Some A lot Lenght the student stay with same teacher: Varies greatly (excluded dummy) 1 year or less two years three years four or more years Parents’ influence in school decisions A lot (excluded dummy) Some Little Not aplicable Students’ influence in school decisions A lot (excluded dummy) Some Little Not aplicable Proportion of the students that attended pre-primary school Less than 25% 25% - 50% 50% - 75% More than 75% % of students that need remedial instruction in reading 1 whether the school has a reading specialist available Teacher level variables % of hs in reading instructions % of hs in formal learning % of hs with reading instruction Teaching time 1 if the teacher approach is to give general lectures 1 if the teacher gives the same material for all students Coef. St Error -0.049 0.027 0.016 0.048 -0.042 -0.150 0.048 0.090 0.072 0.059 0.044 0.045 0.058 0.076 -0.015 0.057 -0.161 0.046 0.068 0.078 0.090 0.080 0.093 0.161 0.066 0.074 0.077 0.068 -0.042 -0.064 0.014 0.073 0.082 0.106 0.042 0.028 0.034 0.062 0.071 0.102 0.014 0.017 0.071 -0.033 0.092 0.047 0.054 0.074 0.004 0.055 0.018 -0.411 0.045 0.018 -0.065 -0.095 0.035 0.067 0.055 0.044 0.041 0.075 *** * ** ** *** * *** The availability of a reading specialist in the school has a positive and statistically significant (at 10%) effect on the student scores. Since the dependent variable is standardized to have zero mean and a standard deviation of 1, the availability of the reading specialist increase the score in 9.2% of the standard deviation in test scores at the student level, what is a relatively important effect. 115 In terms of for how long the teacher stays with the same student, we find that there are not differences from 1 to three years, but there is a significant effect for those who are fourth years or more with the same teacher. Most of the countries in this category are Eastern European countries. For instance, in Argentina only 0.75% of the school surveyed fall in this category, whereas in Hungary 55%, Bulgaria 89%, and Romania 90% (see table). Therefore, some caution should be taken when interpreting this result, since this variable might be capturing other effects that are common to this countries. In fact when we include country fixed effect, the estimated coefficient for this variable is reversed, it goes from positive to negative as the teacher stay more years with the student. Using a country fixed effect model do not change qualitatively the rest of the results, although even less variables remains significant (because a large part of the school variation is eliminated once we include the country level). Table 51. Length the students stay with the same teacher Country Argentina Belize Bulgaria Canada Colombia Cyprus Czech Republic England France Germany Greece Hong Kong, SAR Hungary Iceland Iran, Islamic Rep. Of Israel Italy Kuwait Latvia Lithuania Macedonia, Rep. Of Moldova, Rep. of Morocco Netherlands New Zealand Norway Romania Russian Federation Scotland Singapore Slovak Republic Slovenia Sweden Turkey United States World varies greatly 4.5 23.4 0.6 2.0 13.3 32.1 10.1 1.6 20.0 5.5 34.1 54.6 0.9 31.4 12.0 14.8 6.0 65.0 2.9 1.4 0.7 4.1 26.4 7.7 3.4 11.9 3.6 4.4 5.6 2.0 30.2 6.9 2.1 2.6 1.8 11.4 one or less 46.3 57.0 0.0 89.5 35.7 42.8 1.4 86.4 47.4 0.0 14.1 31.2 0.0 0.0 77.1 17.0 0.6 27.6 2.2 0.0 0.0 2.0 60.0 71.8 74.2 0.0 0.7 0.0 69.4 50.0 4.7 20.1 2.1 8.5 95.1 30.5 two years 35.1 16.8 3.0 8.5 21.7 24.4 40.3 11.2 21.5 29.2 41.5 14.2 27.4 17.0 6.0 65.2 1.1 6.5 2.2 0.0 0.7 0.0 10.0 17.1 16.3 5.2 2.9 0.0 23.2 48.0 33.6 68.1 28.5 11.8 2.4 18.4 three years 13.4 1.9 7.7 0.0 10.5 0.8 33.8 0.0 8.2 10.6 9.6 0.0 17.0 43.2 1.1 2.2 13.1 0.0 19.0 0.0 0.0 4.1 1.8 3.4 3.4 44.0 2.9 52.9 1.9 0.0 10.1 4.9 63.2 19.6 0.0 11.6 four or more 0.8 0.9 88.7 0.0 18.9 0.0 14.4 0.8 3.0 54.8 0.7 0.0 54.7 8.5 3.8 0.7 79.2 0.8 73.7 98.6 98.5 89.8 1.8 0.0 2.7 38.8 90.0 42.7 0.0 0.0 21.5 0.0 4.2 57.5 0.6 28.1 116 VII.3. Oaxaca-Blinder Decomposition In the next table we present the Oaxaca-Blinder decompositions for similar income level countries: Colombia, the Czech Republic and Hungary. The results are qualitatively similar to those found in PISA, but here we have a richer set of variables. The disadvantage of PIRLS is the high frequency of missing variables, what might affect the results. Here we assume the missing is ignorable, and proceed to do the analysis following the complete case approach. The complete case approach has some problems. For instance, for the entire sample Colombia has 1072 school hours per year and Argentina 693, but in our regressions the differences are not so large. This limitation of PIRLS must be consider when interpreting the results. We start our analysis with those variables that were also included in PISA, showing that the results are similar. First we find that difference in term of school hours per year is more in the slopes that in the endowment (average number of hours), where Argentina is less efficient in transforming school hours in score points. This is true even when we compare Argentina with Colombia. Second, Argentina does not show large differences compared to Colombia and the Czech Republic in terms of the proportion of with low SES, and more students with low SES when compared to Hungary. The estimated coefficient for all the countries is negative, therefore a negative return effect means that these countries have a larger estimated coefficient, what means they are able to obtain better results with these socioeconomically less advantageous students. We find this result for Hungary and Colombia, and a negligible difference with the Czech Republic, what shows that the quality of education in Argentina is more unequal. 117 Table 52. Oaxaca-Blinder Decomposition, similar income level countries Endow School Level Number of school hours per year -28.8 % of students from disadvantageous families 0.3 Index of Availability of school resources: High (excluded dummy) Medium 2.1 Low -16.1 Shortage of books in the school library Not at all (excluded dummy) A little -1.9 Some 2.8 A lot 12.3 1 whether the school has a reading specialist available 0.1 Shortage of teachers in the school Not at all (excluded dummy) A little -2 Some 2.9 A lot 0.6 1 if the school has a library -9.1 Length the student stay with same teacher: Varies greatly (excluded dummy) 1 year or less -4.5 two years -6.7 three years 0.8 four or more years -37.7 Parents’ influence in school decisions A lot (excluded dummy) Some 0.6 Little -0.2 Not applicable -1.8 Students’ influence in school decisions A lot (excluded dummy) Some 0.4 Little 0 Not applicable -1.6 Proportion of the students that attended pre-primary school Less than 25% 25% - 50% -3.2 50% - 75% 0.2 More than 75% 3 Class Level % of time allocated to teaching -0.4 % of time allocated to formal reading instructions -12.3 % of time allocated to reading instruction -3.1 Frequency of reading classes -1.3 1 if the teacher approach is to give general lectures -2.9 1 if the teacher gives the same material for all students 2.5 % of students that need remedial instruction in reading 1.6 Intercept Total -103.4 Colombia Czech Republic Hungary Returns Inter. Endow Returns Inter. Endow Returns Inter. 53.7 -16.5 31.2 -1.2 -5.5 -1 45.9 3.5 5.1 -0.8 8.7 -27.7 9.1 17.2 5 -1.6 11.2 8.6 4.2 18.6 7.2 -7.1 -4.2 10.2 4.6 14.1 10.3 -6.3 -3.9 -25.6 -13.5 -33.4 1.1 3 -13.9 -25.1 -0.3 6.2 1.5 -10.7 -5.2 -14.4 -3.8 -18.1 0.4 -5.5 -2.1 11.8 5.3 -0.4 2.4 -5 0.7 -7.4 -1.8 -3.6 -0.5 0.3 -1.6 2.1 -0.6 -7.2 0.6 -1.1 -41.9 2.1 1.1 -0.3 7 -3.5 1.2 -2.1 9.6 -5.4 -2.9 -2.1 -69.5 2.7 -2.3 2.1 -12.3 -1.8 0.1 1.7 8.2 -1.6 0 -1.6 -52.4 0.6 0 -1.4 -7.6 -43.6 -23.1 -3.2 2.9 8.5 13.4 -2.1 36.3 -22.3 1.6 3.5 -22.8 -22.3 -18.3 -1.9 2.5 21.7 -2.5 -5.3 18.4 -20.1 -3.2 1.5 -75.1 -20.1 -0.7 -0.4 2.3 20.1 0.2 -0.3 78.6 12.7 21.4 6 1.4 9.8 -2.6 2.5 0 -0.2 -7.8 -1.4 -2.7 -3.3 0 0.2 2.5 0.9 -2 -9.8 -4.2 -4.2 -3.2 -2 2.3 -11.6 -13 -2 -2.6 0.6 -9.3 0.6 0.2 -0.9 7.5 0.4 0.3 2.4 0.4 0.9 0 -6.4 -5.3 -7.8 1.3 0.6 0.1 3 4.2 -11.2 -1.3 -4.2 2.9 0.2 -2.9 -5.9 1.2 -4.3 -5.8 1.2 -4.3 2.8 -1.2 4.3 -2.5 0.2 -7.2 0 0.7 -7.2 0 -0.5 7.2 -19.9 39.2 -7.4 -54.5 32 7.9 32.5 141.6 39.5 0.9 10.8 3.4 1.5 -8.9 -4.5 -1.7 -3.9 22.7 36.6 -16.2 -0.9 1.7 16.6 8 -23.9 -44.7 18.6 1.8 -1.7 -5.4 -2.6 4.2 8.7 -15.7 -4 2 11.6 68.3 -21.6 46.8 -8.3 -52.5 -20.2 4.3 9.8 255.1 13.1 120.1 -15.7 -19 27.7 -5.9 -27.7 -31.6 4.7 2.6 272.2 -83.2 101.3 4.1 -4.7 -8.4 15.6 7.2 -3.5 -1.4 109.4 In terms of school resources, Argentina has more resources than Colombia (negative endowment effect) and less resources than the Czech Republic and Hungary, but the return effect is positive for all the countries, what means that these countries are more efficient than Argentina to transform those resources in score points. For the dummy taking 1 if the school has a library (another resource-related variable) we find the same 118 pattern in terms of endowment (Argentina better than Colombia but worse than the Czech Republic and Hungary); but in this case the return effect is negative, what shows that Argentina is more efficient in using those more limited resources. Also related, the lack of books in the library favors Argentina, but since the coefficient is negative it reflects the fact that Argentinean scores are less affected by books shortages than Colombian, Czech or Hungarian scores. Having or not a reading specialist in the school has a relatively small effect, In terms of the length the student is with the same teacher, the interpretation is not neat, since Argentina has a negative coefficient when the length is larger (this is related with the fact that in Argentina the teacher is more than one year with the student only in small schools or in schools in small towns). In terms of endowment, the proportion of students that stay more than one year with the same teacher is much larger in Colombia, the Czech Republic and Hungary than in Argentina. In terms of shortage of teachers, there are not large differences in terms of endowments neither in terms of slope, although Argentina shows a low severe shortage since it has a negative endowment effect for the first category (low shortage). The variable “Parents’ influence in school decisions” reflects the degree of attention paid to parents’ opinions. It is important only for Colombia in the return effect, indicating that Colombians best exploit listening to parents than Argentina. Variable “Students’ influence in school decisions” reflects the degree of listening to students which does not presents particularly large differences among the countries. Finally, preprimary school variables are including presenting small differential effects over the scores for both countries. Next we analyze the class-level variables, mainly related with the approach the teacher uses to teach. First we find that in Argentina using the same material for all the students, 119 even those who show reading problems, is more common that in the other countries, but the effect of this endowment differences is relatively small. The slope coefficient, related to how the students with teachers that use the same reading material for everybody perform in the test is positive for all the countries, what shows that these countries can obtain better scores even when they use the same material. Second, the proportion of time that teachers spend in reading instruction relative to the whole number of hours in language instruction, the results depend on which country we choose as a comparator. Third, the proportion of time allocated to formal instruction has a positive and strong return effect, what shows that Argentinean teachers seem to exploit formal hours of language not as well as Colombian, Czech or Hungarian teachers. Notice that the endowments and interaction effects are smaller and tend to cancel each other because Argentina has a different sign coefficient for this variable as formal hours do not improve scores in Argentina. This could be a side effect of bad teaching quality or lack of preparation from teachers, hypothesis reinforced by the return effect. Fourth, the difference between spending a large amount of time in language compared to spending the least amount of time suggested that the passage from very little time in language instruction to a lot of time is reflected in around 50 score points more for both Colombia and Czech Republic classes and 30 more points for Hungary than for Argentineans. Over a total of 500 points, this is a very important effect which signals again a problem in the marginal return of extra hours of teaching. We now turn to analyze the degree of personalization in teaching. The variable reflects whether classes are directed to all students at the same time or personalized. Here the effect is very different between Colombia and the Czech Republic. For Colombia, this variable tends to contribute to a positive gap reflecting that global teaching improves scores more in Colombia than in Argentina. However, in the cases of the Czech Republic and Hungary, the variable presents a negative coefficient reflecting that teaching to all the 120 students together is negative for scores. As for Argentina this effect is the oppositve, the return effect is very large and negative when compared to the Czech Republic and Hungary. As a summary of this first subset of countries, in different variables we find important return effects that suggest a worse or better utilization of the resources available in Argentina compared to the other two countries. In some cases this is due to the fact that the effect of variables does not have the same sign in both countries and therefore the returns effect does not reflect a higher impact of the variable over scores but simply a qualitatively different effect, possibly due to cultural or institutional differences. 121 VII. A Hierarchical Lineal Model with ONE In this section we decompose test score using a hierarchical lineal model but at subregional level (instead of cross country). Neither PISA nor PIRLS can help to analyze the heterogeneity in the quality of education by economic regions in Argentina. We base this analysis on ONE 2000, which identifies the class level and it is a census type data. We can extend the HLM to 4 levels: student, class, school, and province. ONE 2000 tested 6th grade students in primary school (the last year of EGB2) and students in 5th grade of secondary school (last year of Polimodal). Because teachers are uniquely assigned to each class only in primary school, whereas in secondary level the same teacher teaches the same class to different classrooms, and we are interested in the factors associated to teachers explaining the between classroom variation, the analysis will be performed only with the students in 6th grade. IX.1. Variance Decomposition Classroom and School Variation First we estimate a null HLM model with 2 levels for the entire sample: students and schools. This includes all the students, even in rural schools and adult education. The percentage of the total variance explained by the between school variation is 37.4% (and 62.6% is explained by the within school variation). This results is significantly different from the variance decomposition result found with PISA, where the within variation represented 50% of total variation. An explanation for this is that we are considering now a much larger sample, what increase the heterogeneity at the student level, although we have to take into account that the tests are measuring different aspects. Next we estimate a 2 levels HLM null model with students and classes (instead of schools), finding a slight reduction in the proportion explained by the student level, which now is 60.6%. This is somewhat a surprising result, what shows that there is not 122 much variation between different classes inside each school. Even restricting the sample to schools with more than one class we find that class-variation is much smaller than school variation. To understand better the relationship between classes and schools, we restrict the analysis to non adult urban schools with more than two classes in 6th grade. First we run a 3-level HLM with: students, classes and schools. The within variation (student level) represents 64% of the total score variation. In terms of between schools and between classes variation, we find that school variation is much more important than class variation, explaining 26.5% of the total variance, compared to the 9.5% that explains the betweenclasses variation. This result is in contradiction to what Hill and Rowe (1996) claims, that when classrooms are included as a level between the students and the school, the between-classroom variation in achievement is larger than the between-school variation, and the latter is often reduced to a very small value. Based on that result the authors claimed that school effectiveness research should be focus more at classroom level than at school level. Our result does not necessary mean that the teacher characteristics or peer-group effects at the classroom does not matter. Rather it is showing that here is a lack of variation in classes within schools, what might be a result of a school selection of teacher which is relatively similar, and to the random assignment of students into classes (something we will discuss further later.) 4-levels HL model Next we extend our model including a fourth level, provinces, finding that the between provinces variation explains only 3% of the total variance, mainly due to differences reflected at the school level. This relatively low importance of the between–provinces variation shows that despite the large across-provinces disparity in development level, the educational system (as a global system) is very homogeneous across regions, and the differences are mainly the school and classroom inputs more than differences in inputs at province level (such as public expenditure, years of schooling, etc.). This is related with 123 the results found earlier that across provinces there is not much variation in the public expenditure per public student, in teachers wages and other systemic variables. Provinces School 3.03% 26.45% 23.44% Class Student 9.50% 9.48% 64.05% 64.05% Next we decompose the variance in each level including covariates. At classroom level we include the following block of variables: a) Class Resources: which includes two variables: - class infrastructure (a factor index constructed with variables related to the class situation in terms of infrastructure) - class material (a factor index constructed with variables related to material available at the class level, such as books, TV, computers, etc.) b) Teaching Methodology, which includes the following variables: - Tests frequency - Task frequency: An index constructed with variables related to the frequency in which the teacher gives homework assignments, oral lessons, class presentations, etc. - Special classes: frequency in which the teacher gives special classes targeted to those students with more difficulties in the learning process. - A dummy variables for the categorical variable of “importance put on passing the grade” (that takes one if promoting is highly or moderately important when grading) - A dummy variable for grading importance, which takes 1 if the teacher believes grading is highly o moderately important. c) Class Climate, which includes the following variables: - Involvement: which is a simple average of Degree of parent involvement (a factor index with several variables related to the extend that parents 124 collaborate with the teacher, meeting with parents, etc.) and Degree of student involvement (a factor index constructed with variables related to the degree of the student participation in classroom activities) - Class Environment d) Peer characteristics at the classroom: a set of variables related with the classroom average student characteristics (such as wealth, SES, age, family size, etc.) At school level we include the following block of variables: a) Funding, a set of dummies variables indicating the proportion of public funding on the total school resources b) School Infrastructure: a factor index constructed with variables such as ratio of computers per student in the school; whether there is a library in the school; whether there is a computer lab in the school; proportion of computers used exclusively for administrative task; whether the school has access to electricity, water, telecommunications, internet; the state of the building; whether the director thing the building structure is appropriated for teaching; etc. c) School climate: a factor index related to school environment (violence, whether some student has been robbed, whether some student has been attacked, frequency of violent acts, etc.) d) Peer characteristics at the School: school average of wealth, SES, age, family size, etc. The main results in terms of variance decomposition are shown in the next table. The most important variable in both levels (classroom and school) is the peer characteristics, which explains 10.8% of the total variance at classroom level and 64.7% of the variance at school level. At classroom level, the climate explains 7.9% of the total, whereas the remaining policy variables included explains a very small proportion of the classroom variance. Note the high proportion of classroom variance not explained by any of the variables included, what means that unobservable variables at classroom level, what 125 presumably are related to teacher unobservable characteristics (since we include several student characteristic variables). At school level, the most important policy variable is infrastructure related variables, what explains 4.5% of the school level variance. Public funding and school climate explains a negligible part of the total between-school variation. It is important to point out the gains in terms of understanding policy issues of using classroom and school levels. If we assume that the main effect of the peer group effect is at the classroom level, what does not seem to be a strong assumption, then the proportion of the total variance explained by peer characteristics at the school level should be more related with other school variables correlated with the student characteristics at the school, such as the school resources (private contribution of parents in public schools, what are very common in Argentina, or the fee in the case of private schools). In the ONE survey to school directors it was asked the proportion of total school funding that parents contribute though the “Cooperadoras” (which is a parallel to the school institution formed by parents that through private contributions and activities rise funding for the school) but it does not ask the total funding available. Since in private schools the fund raising is through the school fees and not the Cooperadoras, we have zeros or small proportion for these schools even though they probably have more resources. The teacher wage was neither asked in the teacher survey. Therefore we do not know how important are the unobservable differences in funding, which probably are related to peer characteristics. We will explore this hypothesis further in this study limiting the analysis to public schools, to see whether among public schools the proportion of total funding contributed by the Cooperadoras matters, and this reduce the proportion of the variance explained by school peer characteristics. 126 Table 53. Variance Decomposition for between school and classrooms variation Unexplained Peers Climate Teaching Methodology Class Resources/ School Infrastructure Funding Total variance at the level Classroom Level As a % of As a % of between total variance classroom variance 8.16% 80.65% 1.09% 10.76% 0.80% 7.90% 0.01% 0.14% 0.06% 0.55% 10.11% School Level As a % of As a % of between total variance school variance 6.54% 30.67% 13.78% 64.65% 0.01% 0.03% 100.00% 0.97% 4.53% 0.02% 21.31% 0.11% 100.00% In terms of comparing these results with those found in PISA, we should remember than in PISA, 55% of the between-school variance in Argentina was explained by peer characteristics, and 26.1% by school context. This means that 81.1% of the between school variance according to PISA and 64.7% according to ONE was explained by variables which are not related to specific school policies (other than the admission). Infrastructure and resources, according to PISA explained 8% of the between-school variance, and here we find that similar variables explain only 4%. How should we interpret these results? Does school and classroom policy matters? The fact that socioeconomic variables unrelated with classroom policies and school policies (other than admission) explained a moderate part of the total variance at each level, when we include a rich set of controls for the peer characteristics, means that the high proportion of unexplained variance should be related with other variables, which presumably are associated with teacher unobservable characteristics and school policies. In this sense, the set of controls included for these variables has not been rich enough to capture these characteristics, what still leaves open the question of what factors explains the quality of education (if we can ever observed those factors). It is important to note that some of the school and classroom variables can have an effect interacting with student characteristics, what we will explore next in this work. We think the importance of peer group effects following this approach cannot be quantified. For this reason an important part of this paper is devoted to the identification 127 of peer group effects. Once we identify this effect we can ask the opposite questions, what proportion of the variance remains to be explained at classroom and school level once these effects are eliminated? If we correctly identify peer group effects, even if we cannot precisely identify the factors, we know what proportion of the student achievement is really related to policy variables (other than the admission policy). Table 54. Estimated Coefficients for Classroom and School Levels 4-Levels HLM model Variable CLASSROOM LEVEL Class Resources Infrastructure Materials Class Climate Environment Involvement Teaching Test Frequency Special Classes Task intensity Grade importance Promotion Importance SCHOOL LEVEL Infrastructure Funding Climate Participation Coefficient Standard Error *** Robust Standard Error -0.0194 -0.1839 0.005869 0.017099 0.0019 -0.0987 0.002792 0.003192 0.0025 -0.0102 0.0022 0.0039 -0.0090 0.001431 0.002966 0.004893 0.005936 0.006113 * 0.0095 -0.0007 0.003673 0.002017 *** 0.00803 0.00438 -0.0580 0.0008 0.008614 0.000311 *** 0.01987 0.00070 *** *** *** *** 0.01319 0.03938 0.00575 0.00701 *** *** 0.00313 0.00613 0.01042 0.01247 0.01276 *** Notes: ***, **, * denotes statistical significance at 1%, 5% and 10% respectively 128 IX. Peer-Group Effects in the Classroom The peer group effect is in the core of the discussion. First because previous HLM estimates might overestimate the peer group effect at school level, if these characteristics are associated with unobservable school or city characteristics. Second, if the peer group effect is non-linear, the increasing segregation of students and schools observed in Argentina might have an effect on educational achievement. In Argentina, the increasing share of private schools in total enrollment has increased the segregation by socioeconomic level, particularly in the richest cities and neighborhoods. The fact that private schools share is growing in richer communities, might be a reflection of a higher demand for education (spending and quality) and since public schools are administrated at province level, the local demands are not easily satisfied, what gives room to the emergence of private schools. If the peer group effect is linear, the resorting has a more neutral effect on aggregate school quality at city level, because what the high socioeconomic level student gains in terms of achievement is similar to what the low socioeconomic level student losses. Of course the inequality increases with the resorting. If the effect is concave, the resorting of students according to socioeconomic level might have increased the overall quality of the city (and country) and if it is convex, it should have had a negative impact. The usual assumption in the literature is that better peers increase the student performance, but the peer group effect might have a more complex effect. For instance, it could be that the student gains with more similar classmates rather that when better peers, for instance because teachers are more effective with a more homogeneous classroom. If this is the case, the resorting observed in Argentina is welfare improving (Pareto efficient). In this section we estimate the peer group effect in the classroom using the fact that in Argentina, the typical primary school assigns students to classrooms in the first grade and 129 they preserve this assignment up to the end of the primary school. Ability tracking is not a common practice (reallocating student across classes according to their performance) neither the students attend different classes (there is a single class and a single teacher for each group). In addition, schools do not take tests to incoming students; therefore, the school has not enough information about the student type to assign students in the first grade based on the student ability. The allocation, therefore, works as a natural experiment, with a random allocation of students. The details are shown in the appendix, here we discuss the main results. The first result is in terms of the direction of the bias. We find that the coefficients for all the peer group variables included have an upward bias in a simple OLS estimation, compared to the school fixed effect model. The bias is not small, for instance the estimated coefficient for parents’ education is 65% higher in the OLS estimation. Table 55. Estimated coefficients for the peer-group effects variables Robust Standard Errors in Parenthesis Estimated OLS Estimated Coefficient upwards Coefficient Fixed bias OLS Effects Parent's education 1.218 0.737 65.3% Wealth 0.091 0.051 78.4% Family size -2.024 -1.083 86.9% Rooms per family 4.959 3.07 61.5% member Second we analyze non-linearities in the peer-group effect using different specifications. We include the Parents’ Education Squared, to see whether the function is locally concave or convex. We find a negative sign for the squared term, suggesting a concave relationship, i.e. decreasing returns to peer characteristics. This result has been found by McEwan (2003) or Auguste (2004) in Chile. Next we include an interaction term between parents education at the student level and parents’ education at classroom level, finding a positive effect, suggesting that when the student has a more educated family the gains from better peers are larger. Finally, we find that students who are very different from their peers suffer in terms of score. 130 Table 56. Exploring the functional form of the peer group effect Estimated coefficients for the peer-group effects variables Robust Standard Errors in Parenthesis Parents’ Education Parents’ Education Squared Interaction between parents education and peers parent’s education Disparity between parents education of the students and the peers OLS (I) (II) (III) Fixed Effects (IV) 2.078 (0.188) 1.184 (0.028) 1.187 (0.028) -0.028 (0.002) 0.156 (0.052) (V) (VI) 1.183 (0.028) 0.647 (0.055) 0.093 0.048 (0.004) (0.004) -0.067 (0.002) -0.058 (0.002) These results show: a) The high importance of the socioeconomic variables at the classroom and school level in our HLM estimations was overestimating the true peer-group effect, and therefore they are capturing other unobserved variables (such as school resources). b) The estimated peer-group effect function shows: i) decreasing returns, ii) good students gain more with better peers than bad students, and iii) better peers matters but also matters the difference between the student characteristic and the peer characteristics, the more different is the student from his/her peers, the worse is his/her achievement. 131 X. Teachers and the Quality of Education Some specialists argue that the problem in Argentina is that the teacher quality has fallen, and the studies to become a teacher (Magisterio) is providing only pedagogical courses, without paying attention to the contents the teacher would have to teach in the future. The argument follows: teachers are not motivated enough, and teachers themselves are educated in the worst schools, because school quality is highly correlated with the socioeconomic level of the family. In this section we explore who are the teachers now and how teacher composition has changed in the last 30 years. Here we summarize the main results, and a detail analysis is shown in the Annex. X.1. Who are the teachers now? According to the last National Teacher Census (2004), teachers in Argentina is mostly a public sector job. At national level, almost 69.8% of the teachers in basic education work exclusively in public schools, 23.4% only in private schools, and 6.8% in both. The private sector share varies a lot across jurisdictions. Buenos Aires City has the highest ratio with 51.7% of the teachers working in private schools, whereas the lowest ratio is in Formosa, 7.2%. Only 84.9% of the public school teachers are really working, whereas in private schools this ratio is almost 90%. 80% of the teachers are females, although 24 years ago this ratio was even higher (85%). Table 57. Evolution of the Teacher Composition % of Female teachers % of public teachers 1980 85% 83.3% 1991 82.2% 78.4% 2004 79.5% 69.8% 132 Most of the teachers in activity are young, 65% are between 25 and 44 years old. There are not large differences between public and private schools teachers in terms of age composition. In 1994, 24% of the teachers were younger than 30 years old (new teachers) whereas in 2004 only 14.3%, even though the increase in the number of years of mandatory schooling has increased from 7 years to 10 years, and more teachers are needed. In fact the total number of teacher fell between both Census, in 1994 there were 833,391 teachers and in 2004, 825,250, when the total number of students in the system increased. The average age for a teacher increased from 32 years old in 1994 to 40 in 2004. On the other hand, 51% of the teachers have less than 15 years of working experience in 2004 compared to 69% in 1994. The average teacher had 11 years of experience in 1994 and now 15 years. These distributions show that a high proportion of teachers leave their job earlier than expected, and that less young people is interested in the job. In terms of education, 77% of teachers have a higher education degree (although 13.7% of the teachers did not answer this question), and almost 9% of those who answer do not have a teaching degree. The ratio of teachers without teaching degree is higher in secondary schools, and higher among private schools than public schools. Only 6% of the teachers have a university degree, in a country where teaching is a tertiary education degree. The situation for primary school and secondary schools is relatively similar, therefore we focus the rest of the analysis in primary school teachers (EGB 1 and 2). In primary school, only 10% of the teachers have a Master degree or Doctorate, and there are not differences in this ratio between public and private schools. 75% of the teachers 133 affirm to have done a training course in the last 5 years, ratio that is higher among public school teachers (78.5% vs 63.6%). In terms of the level of education for the teachers’ parents, we find that 70% did not finish the secondary school in public schools, compared to only 45% in private schools. The heterogeneity across provinces is very high, and since most of the private education is in the richest provinces the difference is in part due to a compositional effect. To establish whether the educational level for teachers’ parents is high or low, we compute the distribution for the education of young teachers (between 20 and 25 years old), and compared the distribution with the level of education for individuals between 40 and 60 years old according to the household survey EPH. We find that teachers’ parents have more education than the average adult in their similar age range. For instance, whereas 9% of the adults between 40 and 60 years old did not finished the primary school, for young teachers’ parents this ratio is 5.2%. Unfortunately the EPH does not have information for emancipated children, therefore we cannot compare the educational level of the parents of those young people who finished the secondary school (which is the right comparison group) with young teachers’ parents, but the levels shown do not seem to be very high. We check this with the IDEO survey recently collected by FIEL. This survey was collected in Buenos Aires City and Great Buenos Aires area in June 2007 to study intergenerational mobility. It collects information about the household, emancipated sons and daughters, parents and brother and sisters. We first select only those households with son and daughters between 23 and 29 years old (living or not in the household) that have some higher education study (complete or incomplete) and then tabulate the education level for these parents. We find that the educational level of this group of parents is very similar to the educational level of the teachers´ parents, with small differences. Whereas in the control group 19.5% of the parents have up to primary complete, for the teachers´ parents this proportion is 23.1%. Similarly, in the control group 63.4% of the parents have secondary complete or more, whereas for teachers’ parents this proportion is 62.3%. Although the difference goes in the direction that 134 teachers’ parents are relatively less educated than the parents of other individuals in the same age range with more than secondary education, the differences are not so large. Table 58. Teachers’ parents education Individuals Parents for Parents for individuals between 40 teachers between between 20 and 25 years old and 60 20 and 25 years (in 2004) with more than years old old secondary education studies no instruction 1.18 0.2 0.3 primary incomplete 8.19 5.0 2.6 primary complete 29.42 17.9 16.7 secondary incomplete 14.52 14.6 17.1 secondary complete 21.69 21.5 23.3 higher education incomplete 5.24 9.8 10.2 higher education or more 19.75 31.0 29.9 Another interesting result is that only 70% of the teachers work in just one school, with large heterogeneity across provinces (from 90% in Chaco to just 50% in Tierra del Fuego). In terms of the job positions, only 61% have a regular position (20% are substitute teachers, 10% temporary covering the chare, and the rest some combination among these options). There is a significant difference between public and private school teachers. In public schools, only 58% have a regular position compared to 73% in private schools. In the Buenos Aires city, the jurisdiction with the largest private sector share, only 56% of the public school teachers have a regular position compared to 78.4% in private schools. The differences are not only large between public and private schools but also across provinces. In Santa Cruz, only 7% of the teachers have a regular position in public schools compared to 57% in private schools; only 52% of the teachers work in just one school, and 48% have to work in two or more schools, what explains why this province has had recently so many labor conflicts and strikes. X.2. International Benchmarking In most of the countries included in PISA 2000 teaching is a university degree qualification, but not in Argentina. According to the ISCED 5A qualification of language teachers, Argentina ranks extremely bad (see next table), even below other Latin American countries, and in the last position among all the countries in the sample. 135 Table 59. % of teachers with an ISCED 5A qualification in the language of assessment Mean St. Dev World 81.8% 0.314 Argentina 28.1% 0.361 Chile 64.7% 0.444 Czech Republic 88.3% 0.226 Hungary 98.4% 0.109 Poland 78.3% 0.253 In terms of shortage of teachers, Argentina ranks relatively well; in fact Argentina is the second country with the lowest ratio of students per teacher (8.4), very low compared to the world average (18.1). This is explains for the high proportion of teachers actually not working (between 20% and 30%) or working partially (what is called “passive tasks”). This shows: a) shortage of teachers is not a problem, but rather their qualification, b) the low ratio of students per teacher more than a sign of quality is a sign of high inefficiency. Figure 33. Ratio of students per teacher, PISA 2000 Brazil Chile Mexico Peru Thailand Republic of Korea The f ormer Yugoslav Republic of Albania Hong Kong Special Administ rat ive Indonesia Germany Unit ed Kingdom of Great Brit ain and Nort Russian Federat ion Net herlands Czech Republic Romania Japan Ireland Unit ed St at es of America Spain Aust ralia Iceland Sweden Aust ria Poland New Zealand France Israel Bulgaria Swit zerland Lat via Denmark Finland Hungary Greece Belgium Luxembourg It aly Norway Port ugal Argent ina Liecht enst ein 31.5 29.1 27.4 22.9 22.2 21.0 19.8 19.6 18.5 18.2 17.8 16.1 15.7 15.5 15.5 15.2 15.1 15.0 15.0 14.8 13.7 13.0 12.6 12.6 12.6 12.5 12.5 12.5 12.3 12.1 12.0 11.4 11.3 10.7 10.3 9.7 9.6 9.2 9.0 8.9 8.4 7.7 0 5 10 15 20 25 30 35 136 Teachers’ participation in the school decisions in Argentina are above the world average, but below Chile and Hungary. Table 60. Index of teacher participation in school decisions. PISA 2000 Mean St. Dev World -0.05 1.01 Argentina 0.108 0.83 Chile 0.212 0.997 Czech Republic -0.223 0.889 Hungary 0.284 0.919 Based on the World Bank EdStats database and UNESCO we compare teacher characteristics and salaries. Argentina is the country with the largest proportion of young teachers. 30% of the total teachers are 30 years old or younger, compared to 9% in Chile. Argentina is also the country with the lowest proportion of teachers in the more than 60 age range. Argentina also shows a very high participation of teachers and other teaching stuff in the total labor force, twice as much as Chile, and only Hungary has a ratio similar to Argentina, what confirms our previous result that Argentina does not have a lack of teachers. In terms of salaries, Argentina is the country with the lowest salary per teaching hour in the benchmark group; nevertheless, teachers in Argentina are able to obtain monthly salaries (in terms of GDP per capita) in line with the international standards, below Chile but above Hungary and Czech Republic. This shows that teachers in Argentina have more teaching hours than the other countries, something we show before given the high proportion of teachers teaching in more than one school. More teaching hours means that teachers in Argentina have less time to allocate to other activities such as grading and preparing classes, what might reduce the quality of their job. The extremely low 137 Table 61. Teacher Characteristics % % Labor force (25-64 YO) of Student - Teacher % of Teachers teachers and other related staff Ratio in Primary % Teachers Between 30 Teachers in Primary and Secondary School over 60 Under 30 and 60 Education 20.73 30.29 58.72 10.06 4.4 33.43 8.72 60.94 25.52 2.1 23.41 15.08 51.60 28.80 2.7 17.42 13.83 60.93 24.62 3.0 19.62 12.64 66.30 20.86 3.3 10.89 0.00 4.6 11.33 4.70 66.69 24.69 3.6 0.00 15.45 0.00 3.8 22.45 20.51 56.95 21.82 3.1 Argentina Chile Czech Rep. Finland France Hungary Italy Poland Spain UK Starting salary /minimum training Salary after 15 years' Salary at top of scale experience /minimum /minimum training training Argentina 8906 Chile 9067 Czech Rep. 6,806 Hungary 5,763 Mexico 10,465 Australia 25,661 England 19,999 Finland 18,110 France 19,761 Italy 19,188 Norway 22,194 New Zealand 16,678 Spain 24,464 Sweden 18,581 United States 25,707 OECD mean 20,358 Source: OECD/UNESCO WEI 12377 10476 9,032 8,252 13,294 36,971 33,540 24,799 26,599 23,137 25,854 32,573 28,614 24,364 34,705 27,597 14697 14043 12,103 11,105 22,345 37,502 33,540 25,615 39,271 28,038 27,453 32,573 37,317 n.a 43,094 33,752 Ratio of starting salary to GDP per capita 0.8 1.1 0.5 0.5 1.2 1.0 0.9 0.8 0.9 0.9 0.8 0.9 1.3 0.8 0.8 1.0 Ratio of Ratio of salary salary after after 15 years' 15 years' Years experience experience to from starting (min. train.) to starting to salary GDP per capita top salary 1.1 1.2 0.7 0.7 1.5 1.5 1.5 1.1 1.2 1.0 0.9 1.8 1.6 1.1 1.0 1.3 1.4 1.2 1.3 1.4 1.3 1.4 1.7 1.4 1.3 1.2 1.2 2.0 1.2 1.3 1.4 1.4 21-24 30 32 40 11 9 9 20 34 35 28 8 42 n.a 30 25 X.3. Recent Evolution It seems that the teaching activity has lost social recognition in the last 25 years. In addition, now women have better access to the labor market and to higher education than 25 years ago. Both factors should have affected the composition of teachers. If teaching is a less attractive option, we should observe that those who can exercise the option would not opt for teaching. To investigate this hypothesis we analyze who are the teachers using the EPH household survey for the Great Buenos Aires region for 1980 and 2006, which is the only region that we can track back in time up to 1980 (the EPH for other regions started in the 90s). 138 We focus on the characteristics of the teacher husband’s since the teacher characteristics are endogenous. Under the assumption that there is assortative matching (higher socioeconomic level women match higher socioeconomic level men, or in a more drastic characterization more able women match with more able men) we can induce who are choosing to be teachers today compared to 27 years ago based on their husband characteristics. According to the occupation code we can identify who is working in education as the main job, but we do not know if they are working in primary and secondary level or tertiary and university level. Since we are interested in the former, we restrict our analysis to those workers who do not have a university degree. This degree is necessary to teach at tertiary or university level, so restricting our sample we eliminate higher education professors. It could be also the case that some university level workers are teaching secondary level schools (particularly private schools), although most likely teaching would not be their main job and therefore the sample bias should be small. Husband’s income Distribution We first analyze the position of the teacher’s husband according to income deciles. The deciles are computed for the entire population. Then we characterize each teacher according to her husband’s income. If her husband is in the second decile we impute this decile to the teacher. Next we compute the accumulated distribution for teachers according to their decile. The results are shown in the next figure. In 1980, 12.4% of teachers are in the top 4 deciles according to her husband’s income level, in 2006 only 9.1% of the teachers were in these deciles. For the overall distribution, the 1980 distribution (first order) stochastically dominates the 2006 distribution what means the teachers’ husbands are not worse. 139 Figure 34. Accumulated Distribution of teachers by deciles according to husband's income GBA Region 100% 90% 1980 2006 Accumulated Frecuency 80% 70% 60% 50% 40% 30% 20% 10% 0% 1 2 3 4 5 6 7 8 9 10 Decile according to individual income level (entire population) Comparing 1980 with 2006 we found that husband’s education is much higher now. This is not related to the overall increase in years of schooling at country level. The proportion of persons from the total population in the GBA region with at most complete secondary level fell between 1980 and 2006 by 14.5%, whereas the proportion of teachers’ husbands with at most complete secondary fell 49.2%. The increase in education for teacher’s husband is important among public and private schools. Figure 35. Teacher Distribution according to husband educational level GBA 140 100% 90% 1980 2006 public schools 2006 private schools Accumulated Frecueny 80% 70% 60% 50% 40% 30% 20% 10% 0% Sin educación Primaria Incomp Primaria Comp Secundaria Incomp Secundaria Comp Universitaria Incomp Universitaria Comp Husband's Educational Level This shows a pattern seems to be in contradiction of the hypothesis that teaching activity has today a relatively worse position. To asses whether the growth of the private sector in this city is affecting our results we analyze the composition differentiating between private and public school teachers. We do not have information regarding the public or private sector affiliation for 1980, but we have that information for 2006. Since in 1980 most of the teachers were in public schools, we compared 2006 distribution across public and private schools independently with the 1980 distribution, what is shown in the next figure. The results show that there is an important difference between public and private school teachers, and the effect found earlier was due entirely to the increase in the private school share, since private school teachers belong mostly to top income deciles. When we compare public school teachers in 2006 with teachers in 1980 we found that the first distribution (first order) stochastically dominates the second one, what means that public school teachers’ husbands are now more biased to low income levels, what shows a change in composition in line with the hypothesis of a downward change. 141 Figure 36. Accumulated Distribution of teachers by deciles according to husband's income for private and public schools GBA Region Accumulated Distribution of teachers by deciles according to husband's incomel GBA Region 100% Public 2006 90% Private 2006 Total 1980 80% Accumulated Frecuency 70% 60% 50% 40% 30% 20% 10% 0% 1 2 3 4 5 6 7 8 9 10 Decile according to individual income level (entire population) Are public school teachers similar to private school teachers? Private school teachers’ husbands are mostly highly educated workers, 45% of them have a university degree level, whereas among public school teachers only 37% of the husbands finished this level. Something similar happens with the income level, whereas 80% of private school teachers’ husbands are in the top 3 deciles, this ratio is just 66% for public teachers. Surprisingly there are not large differences in term of teacher observable characteristics such as gender, age or experience. There are neither statistically significant differences between average wages, although the teachers in private schools, since they usually have a tuition waiver for their son and daughters, have a much higher real wage, what could even double or triple, depending on how expensive is the private school and how many siblings have. 142 XI. Conclusions and Policy Implications Argentina is definitely ranking very bad in terms of quality of education. It has an average score or a SES adjusted average score which is well below the expected level for its income level. In addition the distribution of the quality according to the student SES is very unequally distributed. Part of this inequality is caused by the high inequality of its income distribution, in terms of SES adjusted scores, although shows high inequality, it is not anymore in the top of the ranking. It seems that the quality of education has a declining trend. This trend is perceived even in the very short period of time of the last 10 years. If we compare Chile with Argentina, Chile was able to improve between 1997 (LAB) and 2006 (PISA), but Argentina has been loosing positions. The explanation for this poor performance is in part explained by lack of resources allocated to education, as our econometrics results and the benchmark analysis show, but this is not the only explanation. Argentina spends in a relatively similar way in terms of its GDP than countries with similar income level, but it has more students to educate since its population is relatively younger. Per student, thus, Argentina is spending less than other similar income level countries. Argentina has lower endowments in almost every dimension: computer per students, educational material, quality of the infrastructure, etc., but also the slope or the efficiency in which those resources are used is in general lower than comparable countries. We find that in addition to the lack of investment in this sector there are several factors showing that the Argentine educational system is very inefficient. We find differences in both, in how much effort do the parents and how the school is working. For instance, we find that in Argentina parents buy less child books and read less to their kids than in similar income level countries outperforming Argentina, what helps to explain the gap. 143 This might show a lower demand for quality of education from the parents point of view, therefore it is not surprising that the state is also spending less per student. In terms of the variables related to how teachers teach, we find that in Argentina there is not enough effort to increase the performance of those students that are falling behind in terms of learning. It is not common in Argentina to have a reading specialists, to have different material for students with problems, or the teacher to educate in a differentiated way, giving different reading, or trying to motivate low performers. In Argentina the policy seems to be to make the student repeat the grade, what might not be the most efficient way to accumulate human capital. Argentina should study the trade offs between the cost per student that repeat vs. the cost of allocating more resources at the school level in order to avoid the repetition (for instance, generalizing the availability of reading specialists). Part of this could be explained by the teacher wage, teachers need to work more hours to match international standards in terms of monthly salaries, what leaves the teacher with less time to spend preparing classes, grading homework, or to have a more effort-intensive teaching. But also we find that teachers in Argentina are lower qualified than in other comparable countries. The high qualified teacher produces in a relatively similar way than in these countries, but the large difference is in the stock of highly qualified teachers that Argentina has. The data shows that Argentina does not need more teachers, but highly qualified teachers, motivated and involved with the teaching process. The Eastern European countries analyzed in this study as benchmark economies have a system which is more stressful, since the performance of the students in the early stages conditions their posterior possibilities (for instance, having access to Academic Secondary schools and therefore to university degree). This higher stress might be reflected in more effort from the parents and the students (a higher demand for quality of education). On the contrary, free access to all the levels in Argentina might be seen as more flexible, or equalizing the opportunities more, but the fact is that if the quality of education in the early stages is poor, the students are self-restricted even if there is free access. Low SES students in Argentina have a score gap much larger than high SES students when compare to similar income level countries, particularly in primary school, 144 what might imply that low SES students, even with free access, do not have equal opportunities. In terms of policies, there are several things Argentina can do to improve the situation, and this is something the specialists know, but first the country has to convince itself that education is a priority, in a country led by the short-run needs imposed by the recurrent crisis. Among the policies, this study provide some favorable evidence in terms of: improving the qualification of teachers, making the teacher instruction process a university degree, improving the hourly wage so they do not need to work so many hours, increasing the ratio of teachers actually teaching, spending resources in the less advantageous students in order to improve their performance (such as having a reading specialist in every school with a high proportion of low performers, or motivating the teachers to have a more personalized teaching). Argentina needs to involve the families in the process, and needs to develop a system specifically designed to deal with, on average, less disadvantageous students. Argentina is now in a vicious circle of declining quality and a very unequal system, what means that the students with low SES are condemned to have a poor quality of education, and aggravating the future problem. 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