Rising Inequality Schools Rising Inequality, Schools, and Childrens - PowerPoint PPT Presentation

Rising Inequality Schools Rising Inequality, Schools, and Children’s Life Chances Greg J Duncan and Greg J. Duncan and Richard J. Murnane

Sir Frank Holmes Sir Frank Holmes 1924 1924-2011 1924 1924-2011 2011 2011

Whither Opportunity? Whither Opportunity? Rising Inequality, Schools and Schools, and Children’s Life Ch Chances Edited by Greg J. Duncan and Richard J Murnane Richard J. Murnane Russell Sage and Spencer Foundations, 2011

Family income relative to 1947

Family income relative to 1979 Top 1%: ↑ 2 69 Top 1%: ↑ 2.69

NZ and US family income inequality US US NZ Source: Perry (2012); US Census Bureau

Why the growing income Why the growing income inequality? q y • Technological change has fueled • Technological change has fueled demand for a higher-skilled workforce kf

Occupational Outlook Handbook • 1976: “Secretaries relieve their employers of routine Secretaries relieve their employers of routine duties so they can work on more important matters ” matters. • 2001: 2001: “Office automation and organizational restructuring have led secretaries to assume a wide range of have led secretaries to assume a wide range of new responsibilities once reserved for managerial and professional staff and professional staff. Many secretaries now Many secretaries now provide training and orientation to new staff, conduct research on the Internet and learn to conduct research on the Internet, and learn to operate new office technologies.”

Why? • Technological change that generally f favored skilled workers d kill d k • Globalization • Globalization • Decline of unions Decline of unions • Falling minimum wage g g • Rise of immigration • Rise of single-parent families

Implications for: children’s achievement and attainment tt i t

Years of schooling completed by U.S. adults Source: Goldin and Katz (2008), Figure 1.4.

College graduation rates for high and low income children and low income children Bailey and Dynarski (2011)

Race and income-based gaps in reading achievement in SAT-type units hi t i SAT t it Reardon (2011)

Race and income-based gaps in reading achievement in SAT-type units hi t i SAT t it High/low income advantage Reardon (2011)

Income inequality and children’s attainment: attainment: Are there ANY causal linkages?

Maybe not: Maybe not: E.g., many more single-parent families now than before especially families now than before, especially for high school dropout and g p graduate parents

Macro Family Wages changes incomes Family Increasing single- processes parent families, Neighborhoods g assortative mating & assortative mating & and schools and schools Child Child incarceration outcomes Loss of U.S. social manufacturing, policies automatable & outsourceable jobs More maternal More maternal stress (and worse Increasing parenting?) and then constant 50- Minimum Falling/stagnant 10 inequality wage, unions real wages for low & immigration skill workers Increasing inequality in time and time and money spent Difficulties in on/with kids attracting and retaining Increasing Increasing Rising real wages good 90-50 class- for high skill teachers inequality based workers achieve- Poor kids ment and exposed to p E Ever-present t attainment tt i t highly skill-biased gaps mobile peers Increasing technologica Rapid rise in residential l change Adverse compensation for and favors high- effects of high-end talent school skill workers worse- (executives, segregatio performing doctors n p peers Explosive Explosive growth in U.S. norms very high about incomes executive Immigration compensation Has public Increasing finance evil been dual earning couples wrought by the Teachers’ superrich ? superrich ? unions? unions? Considerable public Increasing education innovations, political but inadequate given support for the challenges? smaller government (Prop13, (Prop13 Increasing class- Reagan GE feedback Dogs that based residential revolution) to didn’t bark: segregation did unfavorable not reduce macro support for public changes sector

Inequality and Children’s Attainments Families Families Income Child Child inequality Educational Attainment School functioning

F Family income story il i Income Income inequality What money can Child buy Educational Family Family Attainment income Stress and Stress and parenting

Enrichment expenditures on high and low income children low income children Kaushal, Magnuson and Waldfogel

Income effects on achievement Income effects on achievement • Experimental evidence: – Gary Income Maintenance Experiment (Maynard and Gary Income Maintenance Experiment (Maynard and Murnane) – Welfare reform experiment in mid-1990s (Morris et al ) – Welfare reform experiment in mid-1990s (Morris et al.) • Quasi-experimental evidence: – EITC (Dahl and Lockner) – Canadian Child Benefit (Milligan and Stabile) Canadian Child Benefit (Milligan and Stabile) – Casino payments (Akee et al.)

Effects of EITC expansion on children’s test scores and mothers’ health d th ’ h lth Children Mothers Dahl and Lochner, 2009

F Family income story il i Income Income inequality What money can Child buy Educational Family Family Attainment income Stress and Stress and parenting

Income effects on stress • Quasi-experimental evidence on maternal Q i i t l id t l stress – EITC (Evans and Garthwaite) • Experimental evidence from the New Hope work support program

Effects of EITC expansion on children’s test scores and mothers’ health d th ’ h lth # bad CRP ≥ 0.3 mental mg/Dl g/ health da s health days Children Mothers Dahl and Lochner, 2009; Evans and Garthwaite, 2009

School story

School story School story Income inequality - Peer behavior behavior Residential - Student Child segregation turnover Educational School School functioning Attainment - Teacher quality

Residential isolation of low- and high income urban households high-income urban households Authors’ calculations based on data presented in Reardon and Bischoff (2010), Table A1, based on the 10 th and 90 th percentiles

Peers with problems in low and high income elementary schools elementary schools Duncan and Magnuson (2011). “Low income” and “high income” are defined as more than 50% or less than 5% of students receiving free or reduced lunch.

Peer effects Peer effects • Abuse/neglect cases and achievement (Carrell and Hoesktra) ( ) • ADHD diagnoses boost achievement (Ai (Aizner) ) • Classes with more girls boost • Classes with more girls boost achievement (Schanzenbach)

Mobility and teacher effects Mobility and teacher effects • Much higher rates of mobility into and out of schools during the school year for out of schools during the school year for poor children (Raudenbush) • Much harder to recruit and retain good uc a de to ec u t a d eta good teachers in schools teaching poor children (Loeb) children (Loeb)

Future of intergenerational Future of intergenerational mobilty

Men’s intergenerational mobility Source: Hout and Janus (2011)

Participation in higher education of students whose parents have low levels of education (OECD, 2009) Odds ratio 60% 0.9 Proportion of young students (20 ‐ 34 year ‐ olds) in higher education whose parents have low levels of 0.8 0.8 50% 50% education (Left axis) 0.7 Odds of being a student in higher education if 40% parents have low levels of education (Right axis) parents have low levels of education (Right axis) 0 6 0.6 30% 0.5 0.4 0 4 20% 20% 0.3 10% 0 2 0.2 0% 0.1 -10% -10% 0 0 0.0

Future national prosperity Future national prosperity story

Years of schooling completed by U.S. adults Source: Goldin and Katz (2008), Figure 1.4.

Population that has attained tertiary education (OECD; 2010) Percentage, by age group g , y g g p % 70 25 34 ear olds 25-34 year-olds 55 64 ear olds 55-64 year-olds 60 50 40 30 30 20 10 0

Policy thoughts • Although income inequality may be the root Although income inequality may be the root cause, reducing it may not be the most cost- effective policy for boosting school success effective policy for boosting school success • Attack the problem on three fronts – Effective pre-K programs Effective pre K programs – Effective school reform – Economic support programs (EITC, New Hope) E i t (EITC N H )

Race and income-based gaps in reading achievement in SAT-type units hi t i SAT t it High/low income advantage Reardon (2011)

gduncan @uci.edu

Odds of accessing higher education by low parental education for 25-34 year olds parental education for 25 34 year olds OECD (2012)