Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Sunday, February 20, 2011

The absurdity of numbers?

A number of recent posts on Inside Higher Ed have highlighted national (U.S.) debates on post-secondary policy and its relation to Barack Obama's economic/policy plan. Obama has repeatedly emphasised the importance of education and research funding, even as the Tea Party have lobbied the Republicans to try to reduce funding. Meanwhile legislation has been introduced for the purpose of regulating private, for-profit career colleges, and it’s being battled every step of the way by the lobby groups associated with said colleges and by their political various allies.



All these developments relate in some way to the pressure to increase enrollments and "completion" rates—what some have referred to as the “completion agenda”—from post-secondary institutions. And that imperative is about developing a “knowledge economy”, so that the United States can remain competitive in the assumed global zero-sum game in which national prosperity is at stake.


In Canada, federal and provincial governments have taken up precisely the same strategy of pushing for more graduates, both in undergraduate and in graduate education (witness in Ontario the provincial Liberals’ goal to create 14,000 more graduate student spaces from 2002-3 levels, by 2010—see OCUFA, 2007).


Like others, I question the use of these kind of numbers as a means of gauging a nation's success at, or progress toward, developing a sustainable “knowledge economy”. Human capital may be available, but this doesn't mean that the “capital” will be put to use (i.e. that people, with their skills, will be able to find employment) in the immediate or near future. Are there sufficient job opportunities for those who make the “individual investment” in PSE, such that the investment will “pay off”?



The numbers conceal a potential over-production of graduates through the assumption that more college/university degrees automatically means more access to gainful employment for all those who graduate, as well as producing a more "innovative" workforce. (I've previously written posts about relative value vs. inherent value in education, and the policy implications.)

The focus on these numbers also hides the uneven quality of mass post-secondary education and the unequally shared burden of its increasing cost. For example, in the United States the for-profit career colleges often market to traditionally under-privileged groups who cannot access more prestigious institutions, but who ironically end up paying hefty tuition fees anyway—and finding themselves burdened with debt by the time their studies are over. It’s a debt they have trouble re-paying due to difficulties with obtaining appropriate employment after graduation.


Along with student “completion” comes the imperative to discover its causes, a search that has produced a whole range of new objects for measurement. One example is the project to measure levels of “student engagement” (gauged by the National Survey of Student Engagement, NSSE). Tests of student learning “outcomes”, and the development of standardised curricular goals, are also related to this process of environmental assessment.

Responsibility for failure must also be assigned, such as in this article where the author discusses reports that argue that “many American colleges are failing to graduate their students, at a time when the Obama administration and leading foundations are trying to ramp up the number of Americans earning a postsecondary credential.” So the university/college becomes a new target for critiques and for governmental interventions designed to ensure “quality” and positive “outcomes” for graduates.

In some ways, the obsession with numbers is really just a sign that education and its “products” are considered to be more important than ever—for their economic value—and thus they become, increasingly, sites of scrutiny for a plethora of “publics”, including not only governments but also parents, students, employers, and the media. But focussing on and rewarding outcomes, usually “completion” as either a proportion of the eligible age cohort or of the national adult population overall, means that institutions are more likely to implement “quick” technocratic fixes to what is generally a much deeper structural problem. Do we really need more graduates who are struggling to find work and to alleviate debts? How can we create a situation where these graduates are more likely to be solvent and employed upon, or shortly after, finishing their PSE courses?

A larger number of PSE graduates is only desirable, economically, if it produces the intended effect; but what we see instead could be an increase to the number of young people who are actually unable to participate fully in this economy even though they may technically possess the credentials for doing so. Unless this issue is addressed, the "production" of more PSE graduates is much less likely to benefit either the national economy or the individual graduates themselves.

Reference: OCUFA, 2007. Quality at risk: an assessment of the Ontario government’s plans for graduate education.

Tuesday, December 21, 2010

"What Value for a Degree?" Part 2: Inherent value.

To continue from yesterday's post about the "relative value" created when education is a scarce commodity, today I'll write about inherent value--that which we are assumed to obtain simply by completing an educational credential.

Governments are concerned with developing "human capital", which is the value of the workforce as measured by people's skills and capacities for economic production. The argument is that the “knowledge economy” requires more and different skills of the workforce. This assumes that everyone should have more education because education will develop these skills (as economic value that resides in people). So by extension, there is an assumption that education has an inherent value—as something that contributes to the economy through the gross increase of human capital—no matter whether there are better jobs waiting for the graduates.

An assumption of inherent value also means that a financial payoff is assumed for the individual—so there is (economic) value in education for the individual student (or graduate, at least). This dovetails with the current (neo-liberal) policy trend of privatising the sources of PSE funding, including through raising tuition fees. Individual value means individual benefit, and therefore individuals should pay for this benefit.

But as discussed in my previous post, education does not benefit every student equally, so taking an “average” increase to earnings over a lifetime—which is the most frequent means used to “prove” the monetary worth of an investment in PSE—is not the best means of assessing the positive effects of higher education for the most vulnerable/least privileged students, who could benefit most significantly from them.

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In government policy there seems to be a confusion between an inherent value created by a university education (i.e. skills, training, knowledge) and the relative value of a scarce commodity. But what does this difference in concepts of “value” mean when it comes to public debates about education, and the kinds of policies that generate and are in turn influenced by those debates-?

It tends to mean that we fight for university accessibility primarily in the form of increased enrollments, then wonder why attrition rates are so high and why so many students seem to “fail” at maximizing the resources provided by universities (such as student services). It means that governments create targets for the number of university graduates to be “produced” and for the percentage of the workforce that should possess a degree, assuming the additional human capital will generate returns to national economic success--but that many graduates nonetheless find themselves struggling to get work due to a lack of jobs appropriate to their level of education. Never mind ballooning debt loads, since personal financial “returns” to education should take care of this (unequally distributed) burden.

But if there is no job waiting at the end of an expensive degree, then the personal “investment” made by the student is seen as a failed venture for which s/he takes primary responsibility (particularly if student debt is involved).

In the UK right now we can see a clear example of this logic at work. As the system has expanded continuing to use the elite model of governance, costs have increased while the economy has become increasingly volatile. Government response is to radically reduce funding for teaching and to allow universities to raise tuition. Students are told they must now pay for something that in the past was more or less free (i.e. for their parents), a situation that creates inter-generational resentment, producing as it does a lopsided distribution of payment for the lingering costs of expansion.

Yet students will continue to enroll (if places are provided), since university degrees are considered more necessary now, for more people, than ever in the past. It seems that the cost of education rises, and indeed the value diminishes, with increased demand--the opposite of how markets are supposed to work.

Monday, December 20, 2010

"What value for a degree?" Part 1: Relative Value

A friend of mine, who teaches at an English-speaking middle school in Hong Kong, recently asked me if I think too many people are going to college (university).

I think about this a lot, since completion and participation targets are often in the PSE news and in policy. I always find it a hard question to answer—partly because answer means asking ourselves about the purpose of a university education, and what precisely it is about university degrees that they are somehow assumed to equip young people with what it takes to succeed (economically) in the world. What is it that makes a university degree valuable and why is this important?

The focus for students, parents and governments is significantly economic, in policy and in practice—something that has become more the case over time as universities have moved towards “massification” (expansion) and more emphasis on private sources of funding (including tuition).

The benefits of post-secondary (and particularly university) education are expected to increase both the prosperity of individuals and the competitiveness of the national economy. So why is it important to question both the "graduation imperative" as economic policy, and the "accessibility" ideal as progressive social policy?

While in the past it was true that people who earned university degrees then went on to have more economic success, this was partly because university education was an elite education. No more than 5 to 10% of the population had a degree, so it was a valuable thing to have. Higher education usually meant training to be part of an elite; for example, the traditional “liberal education” was training for a small, privileged group who would become the “leaders of society” in law, politics and business.

In a sense, we’re now saying that as many people as possible should have an education of this kind, which means that by definition a university degree ceases to be “elite” in the way described, or to provide any value based on scarcity. This doesn’t mean there is no other kind of value—only that a degree will no longer provide the benefits of a scarce commodity (to the extent that it did in the past). It also means that universities are and will be using more tactics to explicitly demonstrate the value of what they offer (marketing, advertising).

In a system in which we rank and label people, a lack of obvious comparative value creates a problem, since we need to differentiate in order to allocate. If in the past the university degree acted as a filtration mechanism or a stamp of elite approval, it was the case that you had to have money, family/social connections, and/or a lot of smarts and savvy to get one. But how does this “filtering” happen when everyone gets a degree?

The cynical (or perhaps realistic) answer is that a relatively “elite” group will still form, and it does; filtration still happens because our system is driven by a capitalist economic model that works as a hierarchy driven by competition. People are ranked (using grades, for example), and it’s understood that this is more or less a zero-sum game. And some people still start out with far, far more than others when it comes to securing the highest spots in that ranking.

Yet most education systems are premised at least to some extent on the concept of meritocracy, the idea that people succeed based on “merit” or “excellence” alone, rather than through forms of extrinsic (often material) advantage. Though we have plenty of examples to support the idea that meritocracy functions fairly—e.g. working-class kids who “make good”—the wealthier and well-connected students still tend to get the best jobs in the current climate, no matter how many others may have university degrees. And from the inside, it tends look like this is because of differences in cultural, social and economic capital, rather than "merit" alone.

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Coming up soon, in Part 2! Does education have an inherent value in this context? Human capital, personal 'investment', and unequal/unexpected 'returns'.