Economic Education

Economic Education: Path to a Vibrant Future

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Outline• Rationale for pre-university education and

economic education • Review of economic education research• U.S. economists and economic education• Educational reform in South Africa• Education issues in South Africa and

Minnesota• Your potential involvement

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Rationale• Why is pre-university education essential?

Primary and secondary school gross enrollment rates have a significant, positive impact on economic growth. (Barro, 1991)

Education is tied to adoption of new technology, is shown to make physical capital more productive, and leads to capital accumulation. (Benhabis and Spiegel,1994)

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Education Matters to Individuals

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Rationale

• Why is pre-university education essential?

• What is economic literacy?

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Economic LiteracyU.S. National Assessment of Educational

Progress in Economics, 2006

Identified how commercial banks use money deposited in checking accounts (52%)

Used marginal analysis to determine how a business could maximize profits (36%)

Analyzed how unemployment impacts income, spending and production (11%)

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Rationale

• Why is pre-university education essential?

• What is economic literacy?

• Why is economic literacy important?

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Importance of Economic Literacy

Economic literacy is a foundation for democracy and market economies.

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Education Research

Literature is often based on production function analysis.

Output is student performance.

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Production Inputs

Human capital of instructors (degrees, experience, coursework)

School capital (school size, class size, equipment, materials)

Labor (time in class)

Technology (teaching methods)

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Education Research

Teacher education is the most consistently positive and significant input.

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Economic Education Research in Minnesota

Objective was to identify factors that affect student performance in economics.

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Data1,244 high school students

Pre- and post-test scores, gender, race/ethnicity

28 TeachersPre- and post-test scores, gender, teaching experience, degrees, number of college-level economics

22 schoolsSize, % of learners on free and reduced lunch, % of special education learners

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Findings• Increase in teacher knowledge

significantly and positively affects student performance.

• Number of economics courses and completion of a Masters degree impacts student performance

• Student and teacher gender do not affect performance.

• Race, ethnicity has an impact.

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U.S. Economists and Pre-University Economic

Education

Council on Economic Education is an affiliated network of state council and 200 university-based centers for economic education.

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Council network timeline1960’s – identifying basic concepts for K-12

developing standardized tests

1970’s – development of materials for teacher professional development

1990’s – development of voluntary standards

2000’s – development of national standards and assessments

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South Africa Educational Reform

• One National Department of Education

• New national curriculum

• Outcome based education

• Economics required in R-9 grade level

• Economics is included in national assessment at grade 9

• Economics is secondary level elective

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Pre-University Education Challenges in SA and MN

Challenges to prepare, admit, and retain students previously under represented.

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A closer look at Minnesota

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Minnesota’s Future

Source: State Demographer using MN Dept. of Education data, August 2008

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Minnesota has a Readiness Gap

Source: Minnesota Office of Higher Education, Measuring Up 2008

% in MN Scoring Ready or Above on ACT

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Development Bank of South Africa, Roadmap for Education

93% of math passes in South Africa come from 21% of the schools, mainly white schools.

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Economic Education South Africa and Minnesota

Economics is now required at the pre-university level,

however,

teachers are generally not prepared to teach economics.

Critical need to strengthen professional development programs for teachers of economics.

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How to Become Engaged in Pre-University Economic

Education

• Association promotes economics education

• Universities collaborate with schools

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University of MinnesotaCollege Readiness Consortium

Helping learners master the

knowledge,

skills, and

habits

for success in higher education.

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University of MinnesotaCollege Readiness Consortium

• Enhance K-12 education systems

• Close the achievement gap for under represented groups

• Improving the coherence, relevance and visibility of university K-12 activities

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How to Become Engaged in Pre-University Economic

Education

Your involvement:

Provide professional development programs to teachers

Find a balance among research, teaching, and community involement

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“If we are to successfully navigate future challenges, we must work diligently to maintain the quality of our educational system where it is strong and strive to improve it where it is not.

We must find ways to move more of our students, especially minorities and students from disadvantaged backgrounds, into educational opportunities after high school. "

-Ben Bernanke, Chair, Federal Reserve System

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South African Foundation for Economic and Finance Education (SAFEFE)

Vision: For South Africa to have citizens who are empowered to successfully participate in a transforming society and thus ensure the well being of the country.

Mission: To develop the economic literacy of today’s learners by providing comprehensive, continuing professional developing opportunities for teachers.

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“It is our responsibility as lawmakers and educators to make the educational system work...

Every American will need to get more than a high school diploma. And dropping out of high school is no longer an option.

It’s not just quitting on yourself, it’s quitting on your country – and this country needs and values the talents of every American.

That is why we will provide the support necessary for you to complete college and meet a new goal: by 2020, America will once again have the highest proportion of college graduates in the world.”

-- President Obama, Address to Congress, February 24, 2009

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Higher Education Readiness:A “Man on the Moon” goal that can be accomplished

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Thank you for your time and attention.

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