Tag: finland

Highlights of the New PISA International Test Results

The latest (2012) PISA results are out! PISA is a test of fairly basic, practical skills given to 15-year-olds around the world. Here are some of the highlights:

  • U.S. performance is essentially flat across subjects since 2003
  • Finland’s performance has declined substantially since 2003
  • Korea is continuing to improve, solidifiying its position as one of the highest performing nations
  • Already the highest-performing Latin American country, Chile has continued to improve, leaving the regional average further behind.

The U.S. story needs little elaboration. Neither the structure nor the content of American schooling has changed in educationally meaningful ways since 2003. We still have 50 state education monopolies, with a growing but still realtively small homogenizing federal presence.

The “Replicate Finland!” bandwagon was always misguided. It is simply not sensible to take a nation’s performance on a single test, in isolation, as evidence for the merits (or demerits) of its national education policies. There are too many other factors that affect outcomes, and there are too many important outcomes for a single test to measure. For those who nevertheless championed Finland as a model, the latest PISA results are a bit awkward (see, for instance, the book: The Smartest Kids in the World).

Though the Chilean student protests of 2011 and 2012 focused on the desire for free, universal college, the leaders of that movement also harshly criticized that nation’s universal K-12 private school choice program. About 60 percent of children in Chile attend private schools, most of them fully or substantially funded by the national government. One of the most famous protest leaders, Camila Vallejo, was recently elected to the Chilean congress as a member of the Communist party. The influence of Vallejo and her compatriots has shifted public sentiment against crucial aspects of the nation’s private school choice program, despite the fact that private schools themselves remain extremely popular with parents. It is quite possible that, in the coming years, Chile will unravel the very policies that have made it one of the fastest improving countries in the world and the top performer in Latin America.

The NEA has called for higher U.S. teachers’ salaries based on the PISA results, arguing that some of the top performing countries pay their teachers more relative to people in other careers. This is self-serving and scientifically dubious. The NEA presents no evidence for a causal link between overall teacher salaries and student performance, just a bit of random cherry picking that ignores countless confounding factors. To find the real link between average salaries and performance, we can look at domestic U.S. research on the subject. Hanushek and Rivkin, for instance, find that “overall salary increases for teachers would be both expensive and ineffective.” Not surprisingly, a recent review of Ohio’s data on teacher “value-added” and teacher pay finds an inverse relationship:

in Cleveland… teachers deemed “Least Effective” by the new state evaluation system earned, on average, about $3,000 more than the teachers deemed “Most Effective.”

There’s some evidence that tying teacher pay to student performance helps to improve learning, but that’s about it.

Finally, it’s important to remember that PISA is a test of everyday “literacy” in the three subjects it covers (math, reading, and science). If you want to know how well students are learning the specific academic content needed for continuing study at the college level, PISA isn’t your best choice. For that, take a look at TIMSS.

No, Teachers in Finland Are Not Paid Like Doctors

Photo Credit: Skeptical Libertarian

A meme that is floating around the interwebs claims that Finland’s education system outperforms the United States because “We pay teachers like doctors, students enjoy over an hour of recess, and there’s no mandatory testing – the opposite of what America does.”

That all sounds great … it just isn’t true.

In Finland general practitioners earn, on average, about $70,000 per year, which is less than half of what doctors earn in the United States. The average salary for primary education teachers with 15 years experience in Finland is about $37,500, compared to $45,225 in the United States. Moreover, the cost of living in Finland is about 30% higher.

In short: higher teacher salaries are not what make Finland’s education system better than ours. And I suspect it isn’t recess either.

And, of course, having a curriculum that is more closely aligned with the PISA (the metric by which people judge Finland to be better) than almost any other industrialized nation may exaggerate Finland’s superiority significantly.

Why Slovakia May Not Support Europe’s Bailout Plan

Slovakia is set to vote today on the European bailout plan and may well become a holdout. As my colleague David Boaz noted yesterday, this is due to Slovakia’s libertarian speaker of the house, Richard Sulik, who spoke at a Cato Institute conference in Bratislava last year, and who opposes bailouts of Greece and other EU countries based on sound ethical, political, and economic reasoning. Greece is already bankrupt and a bailout will only add to the country’s debt; an EU “rescue” will continue to create moral hazard, thus encouraging bad policies by reckless governments; relatively poorer and better behaved Slovakia should not be forced to support the irresponsible governments of richer European countries; the EU’s response to the Greek debt crisis has led to blatant violations of EU and European Central Bank rules, thus undermining democratic principles and the EU itself; the scare stories of not approving the bailout should not be believed; the best solution is for Greece is to declare bankruptcy once and for all.

In this document by his Freedom and Solidarity Party, Richard Sulik lays out his party’s opposition to the bailout fund. It is consistent with the views of other leading scholars including that of John Cochrane of the University of Chicago (and a Cato adjunct scholar) as expressed in his recent Wall Street Journal op-ed on how to save the Euro.

Sulik has tapped into popular sentiment among Europeans about the “democracy deficit,” or huge gap between the designs of Europe’s ruling elites and the desires of the region’s citizens. The widespread (and accurate) perception of Eurocrats imposing their agenda on Europe to the benefit of their cronies (e.g., big business, labor unions, and politicians in power) and at the expense of the majority is becoming increasingly difficult to ignore. The Slovak government, which supports the bailout, may well fall on account of this vote, but the prime minister has already indicated that the vote on the bailout fund will be held repeatedly until it is approved. (No doubt there will be little possibility of a repeat vote repealing the bill.)

On a related note, a new Finnish think tank, Libera, provides more evidence that Europeans are rethinking big government. It published a study today which reassesses the record of the Swedish welfare state and praises the numerous market reforms that country has introduced out of necessity since the 1990s.

Prime Minister of Finland Commits Gaffe, Admits that Anti-Tax Competition Schemes Are Designed to Enable Higher Tax Burdens

Most politicians and other advocates of tax harmonization are clever enough to pretend that they do not want higher tax rates. Instead, they assert that their proposals are merely ways of reducing evasion and making tax systems more efficient. So it is rather surprising that the Prime Minister of Finland has a column in the Financial Times, where he admits that various governments should conspire to simultaneously raise tax rates in order to finance big government:

The overall tax rate will have to rise as well over the longer term. In some areas that can be done without much consultation between the countries. For example, property taxes or inheritance taxes can largely be determined at the national level without adverse economic consequences. But such taxes will not raise significant amounts of revenue. Only changes in value added tax, various excise taxes or taxes on earned and capital income can make a real difference. However, raising such taxes can have detrimental effects on economic activity. This is especially so when a country acts on its own: capital and people can respond by migrating to jurisdictions with lower rates. Deeper co-operation is therefore necessary if tax revenues are to be increased in a way that truly helps fiscal consolidation. …It is important that different countries do not find themselves with very different tax solutions. We should avoid tax competition and the damage this would cause to Europe’s economic growth. …member countries could agree, for example, to change the levels of certain taxes in parallel. Parallel measures would help all of Europe: tax competition risk would be reduced and the public finances of individual countries would improve. Such co-ordinated tax changes could set also an important global example. In particular, it might encourage the US – with lower tax levels in most areas – to do what has to be done to address its spiralling budget deficit.

In the column, Prime Minister Vanhanen even suggests that the United States might be tempted to join the tax cartel. This has always been a goal of the Europeans since an OPEC for politicians without the United States will not work any better than the real OPEC without Saudi Arabia. One of my first videos – back in late 2007 – was on this topic, and it is embedded below for those who did not have a chance to view it.