Market Approaches to Education

Seminar Three - EDER 619.06

Teresa Vaccaro - Alfred Smith Kenneth Kim - Dolores MacNeil

David Goldthorp

Market Approaches to Education

Entering the new millennium, the market approach to education seems to be the common theme as each school district is strategizing new ways to balance their budget.

What are the implications if the market approach is to be continued

in the long run?

Suggested Readings

This question is a challenging one, with important arguments on both sides of the issue. Suggested readings follow with accompanying summaries that introduce us to different aspects of privatization and market approaches to education .

Suggested Readings - 1

Ridenour, C.S., Lasley, T.J., II, & Bainbridge, W.L. (2001). The impact of emerging market-based public policy on urban schools and a democratic society. Education Urban Society, Nov. Retrieved from: http://www.schoolmatch.com/articles/EUS1101.htm

These authors argue four points: First, that public education is intended to serve the public good; second, a shift is occurring to market-based approaches; third, the most disadvantaged students and families will be left behind if the market-based policy takes hold; and, fourth, some conclusions and recommendations for people to consider.

Suggested Readings - 2

Vollmer, J. (2002, Nov-Dec). Teacher gives business a lesson about blueberries. Teacher Newsmagazine, 15(2). Retrieved from http://www.bctf.bc.ca/ezine/archive/2002-11/support/05LessonAboutBlueberries.html

This short, light, yet thought-provoking story tells us about one man who learns that school could not be treated like a business for some very specific reasons.

Suggested Readings - 3

Hannaway, J. (1999). Contracting as a mechanism for managing education services. Retrieved June 6, 2003, from http://www.ecs.org/html/offsite.asp?document=http%3A%2F%2Fwww%2Egse%2Eupenn%2Eedu%2Fcpre%2FPublications%2Frb28%2Epdf

Contracting is an agreement by a board of a public or private school to pay an outside firm to deliver certain educational services. Contracting is a market-based reform presumed to improve performance. Districts have contracted for many services in the past but what is happening now is different.

Market Approaches to EducationFor many years, school choice was considered a theory

supported by free-market enthusiasts and libertarians. Most parents felt that they did not have a choice about where their child went to school, except for a small minority who chose to pay for private education. In the past, public schools have had a monopoly on affordable primary and secondary education.

Today, the powerful idea that all parents should have the ability to choose their child's school is taking hold in

neighborhoods throughout North America.

Market Approaches to Education

Fortunately, for those who believe that school choice offers great promise, it is no longer just a theory but a reform

movement that is beginning to hit its stride. These individuals believe that this approach can increase the

quality of our education system and reduce the achievement gap between poor and wealthy students. As a result, most parents now have a choice and public

schools have had to compete for students, just as stores compete for buyers. The resulting competition has

created a situation that apparently rewards schools that are doing a good job, while forcing the rest to change-or

go out of business. What are the choices available?

Public School Choices

Voucher Programs: Also known as tuition vouchers, these provide parents with a portion of the public educational funding allotted for their child to attend school. States give money “vouchers” to parents of children in public schools. They then have the fiscal authority to send their child to the educational institution that best suits them, whether it is a religious or parochial school, a private school, or a neighborhood or magnet  public school.  These programs empower the family and, in so doing, infuse consumer accountability into the traditional public schools system.Vouchers for a school year generally range from $2000-$4500 in valueFor more information: http://7-12educators.about.com/cs/vouchers/

Public School Choices

Charter Schools:Charter schools are independent public schools, designed and operated by educators, parents, community leaders, educational entrepreneurs and others. They are sponsored by designated local or state educational organizations who monitor their quality and integrity, but allow them to operate free from the traditional bureaucratic and regulatory red tape that hog-ties public schools. Freed from such micromanagement, charter schools design and deliver programs tailored to educational excellence and community needs. Because they are schools of choice, they are held to the highest level of accountability – consumer demandFor more information: http://www.charterschools.ca/csic.html

Public School Choices

Educational tax credits:School tax credits refund expenses made toward education up to a fixed figure. Tax deductions minimize the expense of education by making them itemized deductions. The qualifying criteria covers educational expenses such as tutoring, texts, and computers, and, in the states that have them so far, private school tuition. State legislation determines the amount of credit and what can be included in the deductions. It also states whether private school tuition qualifies.

For more info: http://www.schoolchoices.org/roo/taxcredits.htm

Public School Choices

Home-schoolingHome-schooling is an increasingly popular educational alternative in which children learn outside of conventional schools under the general supervision of their parents. Some home-schooling families operate like small-scale versions of conventional schools, with textbooks and tests and traditional grades. Other families freely adapt ideas from other alternative educational philosophies such as Waldorf, Montessori, Reggio Emilia, or the Sudbury model, while still more give their children considerable control over what is learned and how learning takes place. For more information: http://homeschooling.miningco.com/

Public School Choices

Private/public partnerships:Some school districts have decided to turn over the operations of public schools to private companies. These companies are given the same amount of money that would be given to a public school, but they decide how to spend the money. While these companies expect to make a profit, they also must follow guidelines on academic standards and financing. If the district is not happy with the results, it can end a company’s contract.

For more info: http://www.ecs.org/html/issue.asp?issueid=92

What are the Implications?

(Kuehn, 2002)

Inequality may be propagated between families who can afford choice versus those who cannot.Competition for students will create cross boundary recruitment.Ownership of educational materials and resources. Who owns the rights and who gets the royalties?“Internationalism is not the problem. Commodification and privatization is the problem.”

What are the implications?

Students are not blueberries!

“Schools are unable to control the quality of their raw material, they are dependent upon the vagaries of politics for a reliable revenue stream, and they are constantly mauled by a howling horde of disparate, competing customer groups that would send the best CEO screaming into the night.”

(Vollmer, 2002)

Implications for Consumers?

Public education is intended to serve the public good. What good will be served if most disadvantaged students and families are left behind if a market-based policy shift takes place without appropriate public policy safeguards?In a move from democratic theory to market theory, consumers of education will decide what institutions will be espoused by the public. “Are consumers the better judge of what education should be or are teachers?”Winners and losers in a market system. Is it worth creating losers in an effort to have more winners?

(Ridenour et. al., 2001).

Implications for Teachers?

Professionalism of teachers may be undermined as they are pressured to become innovative in their approaches and draw from non-academic resources to do so .Morality of the market may lose its integrity by means of linking the achievement of individual enterprise with the improvement of 'community' outcomes.

In what ways are teachers being asked to 'make' themselves as corporate professionals?

(McWilliam, et. al., 1999)

Post-Secondary Implications?

For StudentsEducating a marginal student will result in a negative projected return on his education investment when his family bears the entire cost.However, these students will benefit from a market system by: 1) The value of a degree increasing because of the drop in marginal students enrolled in higher educational institutions. This in turn increases entry-level opportunities and career earnings, justifying a higher level of initial educational investment. 2) These students will be able to keep more of their future income because they will not have to subsidize education for others in a public system. 3) Financing opportunities for the disadvantaged will be created by entrepreneurs

(Stuart, n.d.)

Post-Secondary Implications?

For Taxpayers and InstitutionsCitizens who do not wish to purchase higher education will be relieved of the tax burden imposed to finance others' consumption of this productPrivatized universities will give students and campus administrators freedom to create the most efficient allocation of resources and to craft a product that best meets student and stakeholder needs. Locations, programs and standards will be determined by students and their families, rather than politicians or bureaucrats.

(Stuart, n.d.)

Pros & Cons

Whereas proponents see market education as a means of enhancing teacher quality and student achievement via

the rigors of competitive market forces, opponents regard it as a sinister co-

option of the public domain.

“Pros” of Market-Oriented Schools

More explicit partnerships with private companies can be forged.Budgets can be enhanced to increase availability and quality of resources by selling advertisement space. Schools can maximize economies of scale to achieve more efficient school operations and to enhance teaching and learning resources.Privatization enhances the potential for innovative approaches to teaching and learning.The absence of cumbersome government bureaucracy results in efficient school operations.Market oriented education introduces competition. Competition forces schools to improve teaching quality and learning outcomes to avoid market-mediated reprisals.

(Hannaway,(1999), Molnar & Reaves, (2001) & National PTA. (2001))

“Cons”of Market-Oriented Schools

Commercialization of public schools - Students become fair game for corporate designs to program them for brand-loyalty.Profits, rather than teaching and learning, will be the focus of market-oriented schools.Government employment regulations, vis-à-vis teacher qualification, employment standards and staff volume will be absent.Public funds may be misused when financing privatized schools. Accountability to the public will decrease.Educational monopolies may be generated.Market approaches reduce K-12 Education to a commodity and convert stakeholders to consumers.

(Hannaway,(1999), Molnar & Reaves, (2001) & National PTA. (2001))

Marketplace Education

What requirements must be met in order to succeed with market approaches to education?In what ways do you think competition in the education market could serve the public good?How does privatization effect students? Teachers? Communities?What measures can be followed to ensure that all members of the educational community benefit from market approaches to education?

Marketplace Education

What will the future hold for our schools and students? Will privatizing reforms elevate or diminish education? As we move forward into the Twenty-First century, the world will move faster and faster, urging all of its institutions to keep up so as to better serve its people in an increasingly globalized environment. Will market approaches to education then be the answer to the growing minds and shrinking world of our students?

References

Chambers, J.G. (1985). Patterns for compensation of public and private school teachers. Economics of education Review, 4(4), 291-310.

Friedman, M. (1995). Public schools: Make them private. (Briefing paper 23). Cato Institute, Washington, DC. http://www.cato.org/pubs/briefs/bp- 023.html

  Hannaway, J. (1999). Contracting as a mechanism for managing education services. Retrieved June 6, 2003, from http://www.ecs.org/html/offsite.asp?document=http%3A%2F%2Fwww %2Egse%2Eupenn%2Eedu%2Fcpre%2FPublications%2Frb28%2Epdf

 Kuehn, L. (2002, Nov-Dec). BC Government promotes privatization and a market approach to education. Teacher. Retrieved from:

http://www.bctf.ca/NotForSale/privatization/MarketSchools.html 

References

Levin, H. (1992). Market approaches to education: Vouchers and school choice. Economics of Education Review, 11(4), 279-285.

 Levin, H.M. (1985). Educational vouchers and social policy. In Bush Institute for Child And Family Policy (ed.), Care and education of young children in America: Policy, politics, and social science. Norwood, NJ: Ablex.

 Lott, J.R., Jr. (1987). Why is education publicly provided? A critical survey. Cato Journal, 7(2), 475-501.

 McWilliam, E., Hatcher, C. & Meadmore, D. (1999, Nov-Dec). Corporising the teacher: New professional identities in education. Paper presented at the Australian Association of Research in Education Annual Conference. Melbourne. Retrieved from: http://www.aare.edu.au/99pap/mea99070.htm

  

 

References

Molnar, A., Reaves, J.A. (2001). Buy me! Buy me! The fourth annual report on trends in schoolhouse commercialism. Retrieved June 6, 2003, from

http://www.ecs.org/html/offsite.asp?document=http%3A%2F%2Fwww%2Easu%2Eedu%2Feduc%2Fepsl%2FCERU%2FAnnual%2520reports%2FCERU%25202001%2D101%2Fceru%2D0109%2D101%2Ehtm

 National PTA. (2001). Privatization background. Retrieved June 6, 2003, from

http://www.pta.org/ptawashington/issues/privatization.asp

Ridenour, C.S., Lasley, T.J., II, & Bainbridge, W.L. (2001). The impact of emerging market-based public policy on urban schools and a democratic society. Education Urban Society, Nov. Retrieved from:

http://www.schoolmatch.com/articles/EUS1101.htm  

References

Stuart, W.G. (n.d.). Toward a free market in higher education. Retrieved from:

http://www.libertyhaven.com/politicsandcurrentevents/education homeschoolingorchildren/towardfree.shtml

 

Vollmer, J. (2002, Nov-Dec). Teacher gives business a lesson about blueberries. Teacher Newsmagazine, 15(2). Retrieved from

http://www.bctf.bc.ca/ezine/archive/2002- 11/support/05LessonAboutBlueberries.html