Econometrics for Education Policy

Abstract

Each discipline has its own framing and conventions. Economics emphasises the identification of key variables and relationships and their estimation using quantitative research methods, with common reliance on econometrics. The approaches shape what is observed and any resulting policy recommendations.

This paper considers an area of education policy, namely the use of teacher value added measures to improve education outputs and increase per capita GDP. The arguments, approaches and key variables are assessed. The authors combine an understanding of economics methodology and education research and practice to give a nuanced understanding of the policy area. While this paper is written primarily for an economics audience, it can be read in combination with a publication from the Education Policy Response Group which develops the education material underpinning the interpretation given here.

The paper then makes generalised points about the use of econometric techniques and some reserves, qualifications and adjustments that can be helpful when applying findings to real world issues.

Keywords: Education policy, value added measures, econometrics

JEL Classification: C53, H52, I21, I28