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Education
IntroductionEducationalachievementvariesacrossspaceQualityoflocalschoolsisimportantfactorinlocationdecisionsLocaleducationinfluenceseconomicgrowth12-2
SpendingandEducationalAchievementTable12-1:Significantinterstatevariationink-12spendingTable12-2:StudenttestScoresindifferentcountriesTable12-3:StudentachievementinSelectedCitiesRacialachievementgapReadingproficiency:White=43%;Black=12%Mathproficiency:White=51%;Black=14%12-3
12-4
12-5
12-6
Productionfunction:
Achievement=f(H,P,C,E,T)H(home):rulesforhomework;motivation;instructionalmaterialP(classroompeer):boostedbysmartmotivatedpeersSweden:increaseP(50thto84thpct)increasesA(50thto54thpct)Tradeoffswithpeereffect:SortingversusMixingLowachieverbenefitsatcostofhighachieverMixedevidence:Gainsoflowvs.lossofhigh12-7
DifferencesinTeacherProductivityInnercity:Gapbetweenhigh-qualitylow-qualityteacher=1gradelevelTeacherswap:Replaceaverageteacher(50thpct)withsuperiorteacher(84thpct)Averagestudentmovesfrom50thto58thstudentpercentileEarnings(58th)-earnings(50th)=$21,311For20-studentclass,valueofsuperiorteacher=$426,00012-8
CharacteristicsofProductiveTeachersListofproductivitycharacteristicsiselusiveEducationlevel:noevidencethatgraduatecourseworkincreasesproductivityExperienceincreasesproductivityforfirstfewyearsVerbalskillsincreaseproductivity12-9
EffectsofClassSizeAchievementincreasesasclasssizedecreasesFigure12-1:EfficientnumberofteachersMarginalbenefitcurvenegativelysloped:diminishingreturnsMarginalcostcurvehorizontalatteacherwageEfficiency:MB=MCEvidenceMB(earnings)closetoMC12-10
12-11
TeacherCompensation:ExperiencepremiumpuzzleTeachercompensationincreasesbyroughly$1,000peryearProductivitydoesntincreasewithexperienceafter3years20-yearteacherearns1.44timesasmuchasa3-yeartea
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