uk centre for the measurement of government activity mariagrazia luciano oecd conference 3-5 october...

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UK Centre for the Measurement of Government Activity Mariagrazia Luciano OECD conference 3-5 October 2006 Measurement of non-market output in Education

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Page 1: UK Centre for the Measurement of Government Activity Mariagrazia Luciano OECD conference 3-5 October 2006 Measurement of non-market output in Education

UK Centre for the Measurement of

Government Activity

Mariagrazia Luciano

OECD conference 3-5 October 2006

Measurement of non-market output in Education

Page 2: UK Centre for the Measurement of Government Activity Mariagrazia Luciano OECD conference 3-5 October 2006 Measurement of non-market output in Education

Summary

• Background notes: old and new methodology• Measurement of Education Output• Education Productivity articles• New measures of Education Output: adjusting for

quality and real earning growth• Supporting evidence: triangulation• Next steps

Page 3: UK Centre for the Measurement of Government Activity Mariagrazia Luciano OECD conference 3-5 October 2006 Measurement of non-market output in Education

Background notes: old and new methodology

• Previous NA method:

Education output = Education inputs

• In 1998 introduced direct volume measure: pupil numbers and Quality Adjustment (QA) of 0.25% based on GCSE exam results - England used as a proxy for UK

• Following Atkinson Review recommendations (chapter 9): – Attendance instead of number of students for schools (AR 9.1)– Health courses, ITT and nursery places included (ARs 9.4-9.7)

Page 4: UK Centre for the Measurement of Government Activity Mariagrazia Luciano OECD conference 3-5 October 2006 Measurement of non-market output in Education

Measurement of Education Output

Government Expenditure on: Volume Measure used:

Schools Pupil Attendance

Quality Adjustment

Nursery Schools and Classes Pupil Numbers (fte)

Nursery free places Number of places filled

Initial Teacher Training courses (ITT)

Number of students

Health Professional Courses Number of students

fte: full-time equivalent pupil numbers

Page 5: UK Centre for the Measurement of Government Activity Mariagrazia Luciano OECD conference 3-5 October 2006 Measurement of non-market output in Education

Education output 1995 - 2004

86

88

90

92

94

96

98

100

102

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Years

output measure

Average change 1% per year

Currently in National Accounts

Page 6: UK Centre for the Measurement of Government Activity Mariagrazia Luciano OECD conference 3-5 October 2006 Measurement of non-market output in Education

Education productivity articles

• 1st Education Productivity article published by UKCeMGA in October 2005

– output and productivity trends 1995-2004 comparing previous and new methodology

– Presenting the possible methods for quality adjustments and related debate

– Triangulation section: providing wider sources of information on the quality of Government Education services

Page 7: UK Centre for the Measurement of Government Activity Mariagrazia Luciano OECD conference 3-5 October 2006 Measurement of non-market output in Education

New Education output measures

• Adjusting for Quality of output

Pupil attainment– GCSE threshold 5+ A* to C– GCSE Average Point Score

Key Stage Progress– Progress between Key Stage Tests – at age 7,11,14,16– Adjusted Key Stage – apply results to all years age 5-16

• Adjusting for Real Earning Growth

Page 8: UK Centre for the Measurement of Government Activity Mariagrazia Luciano OECD conference 3-5 October 2006 Measurement of non-market output in Education

New Education output measures with quality adjustment

80

85

90

95

100

105

110

1998 1999 2000 2001 2002 2003 2004

National Accounts BB05

GCSE threshold

Adjusted KS progress

Page 9: UK Centre for the Measurement of Government Activity Mariagrazia Luciano OECD conference 3-5 October 2006 Measurement of non-market output in Education

New Education output measures with earnings growth

New earnings adjustment 1.5% per year

80

85

90

95

100

105

110

115

1998 1999 2000 2001 2002 2003 2004

BB05 output

GCSE threshold

Adjusted KS progress

Page 10: UK Centre for the Measurement of Government Activity Mariagrazia Luciano OECD conference 3-5 October 2006 Measurement of non-market output in Education

Supporting evidence - Triangulation

• Ofsted results – improved teaching standards

• Class size – reduction– increased classroom support

• Public assessment – improved standards

• PSA targets – progress towards targets

Page 11: UK Centre for the Measurement of Government Activity Mariagrazia Luciano OECD conference 3-5 October 2006 Measurement of non-market output in Education

Next steps

• Undertake a wider consultation program to gain expert views on how to develop an appropriate method for output Quality Adjustment and Real Earnings Growth

• Improving output and inputs estimates

• Improving triangulation methods