Ludger Wößmann Demand, Autonomy and Accountability: Lessons from International Analysis International Seminar “Demand, Autonomy and Accountability in Schooling” OECD and Department of Education and Training, Flemish Community of Belgium May, 2006

“Empowering” the Demand Side Basically all countries: –Ultimate responsibility and supervision by the state But: public vs. private involvement in 2 broad tasks: –Operation of schools –Funding of schools Public-private partnership (PPP) = any collaboration between public and private entities  Two forms of PPP: 1.Public operation + private funding E.g., parents have to pay tuition fees for public schools 2.Private operation + public funding Private operation by business, church, … Public funding through base funding or vouchers

Public Funding and Public Operation of Schools

International Differences in Public Funding and Public Operation of Schools

Why Should It Matter?

Student Achievement in the Two Forms of PPPs

Public Operation/Funding and Math Performance across Countries

Public Operation/Funding and Reading/Science Performance across Countries

Interactions of Operation and Funding Effect of public funding depending on type of operation:

Autonomy and Accountability  Complementarity: school autonomy + external exams School autonomy allows: –Use of superior local knowledge (good for learning) –Opportunistic behaviour (bad for learning) = Decentralised decision-makers get away with behaving in ways that advance their own interest rather than the system’s interest If there is (a) asymmetric (decentralised) information = imperfect monitoring = limited accountability And (b) opposing interests  Autonomy may be good or bad for student performance –Depending on whether in a given decision-making area, there are local knowledge leads and/or incentives for opportunistic behaviour

External exams can ease asymmetric information –Provide information on how individual students perform relative to national (or regional) student population  Ease the monitoring problems inherent in education  Align incentives of local decision-makers with system goals  Make it more likely that schools act according to the goals of the system if they are given autonomy  By introducing accountability, external exams ease the “bad” effects of autonomy, ensuring a “good” net effect Autonomy and Accountability

Effects of Autonomy on Student Performance — With and Without External Exams —

Autonomy, External Exams and Student Performance – With Opportunism and With Local Knowledge Lead – TIMSS + TIMSS-R Math test score

PISA Math test score Autonomy, External Exams and Student Performance – With Opportunism and With Local Knowledge Lead –

TIMSS + TIMSS-R Math test score Autonomy, External Exams and Student Performance – With Opportunism and With Local Knowledge Lead –

PISA Math test score Autonomy, External Exams and Student Performance – With Opportunism and With Local Knowledge Lead –

Digression on Standardized Testing – With and Without Standards/Goals – PISA Math test score

TIMSS + TIMSS-R Math test score Autonomy, External Exams and Student Performance – With Opportunism and Without Local Knowledge Lead –

TIMSS + TIMSS-R Math test score Autonomy, External Exams and Student Performance – With Opportunism and Without Local Knowledge Lead –

TIMSS + TIMSS-R Math test score Autonomy, External Exams and Student Performance – Without Opportunism and With Local Knowledge Lead –

Demand, Autonomy and Accountability: Main Results from International Analyses Public-private partnerships: –Public school operation  student performance –Public school funding  student performance  Most effective school systems: PPP where the state finances the schools and contracts the private sector to run them Autonomy and external exams: –External exit exams  student performance –School autonomy  in systems with external exit exams  Complementarity: Decentralisation works – if combined with external examination. –Education policy should combine the two: Setting and testing standards externally but leaving it up to schools how to pursue them.

Demand, Autonomy and Accountability: Some Unresolved Issues Equity of student outcomes Non-cognitive skills as alternative outcome measures Interactions between choice, autonomy and accountability Additional measures of choice, autonomy and accountability PISA 2003 data

The EENEE Website – – as a forum to promote and disseminate research on the Economics of Education in Europe: Economics of Education EENEE Mapping of Researchers What’s New Symposia References