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December 2000/January 2001--Class Notes


Smaller class size: It's worth the effort

More studies are showing that class size counts in efforts to boost student achievement. The latest one, included in a working paper from the Economic Policy Institute in Washington, D.C., also argues that smaller class size in grades K-3 ultimately results in higher future earnings for students.

Princeton University professor Alan Krueger, who conducted the study, "Understanding the Magnitude and Effect of Class Size on Student Achievement," prepared a cost-benefit analysis of small class size. He used existing data, particularly from Tennessee's Student Teacher Achievement Ratio (STAR) experiment, to project a 10 percent increase in expenditures per student to finance a class-size reduction of 22 to 15 students. Because reducing class sizes is expensive, "it is reasonable to ask whether the benefits justify the cost," writes Krueger. In the STAR experiment, he says, the economic benefits of reductions in class size are at least equal to the costs.

Improved school resources like smaller class sizes increase test scores, which, in turn, predict labor market earnings. Citing three studies on the effect of test scores on education attainment--which affect future wages--Krueger's research finds a strong relationship between student performance and future earnings.

Krueger's study is also a response to the findings of Stanford professor Eric Hanushek, who concluded in a series of literature reviews that increased spending in general, and smaller class size in particular, do not systematically lead to improved student achievement. Hanushek's response to Krueger is included in the EPI working paper (www.epinet.org.)

Meanwhile, a new report from the Council of Great City Schools shows that more than 4,100 new teachers have been hired in the nation's big-city school systems as a result of the federal class-size reduction program.

The report, "Reducing Class Size: A Smart Way To Improve America's Urban Schools," reports that 32 urban school districts responding to a national survey received more than $242 million in federal class-size funds for the 2000-0l school year, with the bulk going toward hiring new teachers. Based on preliminary data, the council report indicates that the program has contributed to student achievement gains in cities such as Philadelphia and Fort Worth, Texas.

A preliminary analysis prepared for the council by the Rand Corporation found that "lower pupil-teacher ratios had dramatic effects on student achievement in urban schools." According to the report, "Reducing the pupil-teacher ratio to 24:1 resulted in an average 5.8 NAEP percentile point gains [that corresponds to the above 1/2 year] among central city students. Reducing student-teacher ratios to 21:1 resulted in additional NAEP gains of 3.7 points, and to 18 produced additional NAEP gains among central city students of 1.6 points. The analysis showed that no central city with a pupil-teacher ratio above 18:1 had made significant improvements on reading or math scores in the last eight years."

The full CGCS report is available online (note: this is a pdf file and requires the Acrobat Reader, see below) at www.cgcs.org/pdfs/reducing2000.PDF.

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