Economics of Education During a Pandemic: Challenges and Opportunities
A pandemic can disrupt the educational process, highlighting the value of education. This disruption forces stakeholders to minimize social costs and maintain quality education. Issues such as school closures, educational models, and investment in human capital are crucial during such times. Tradeoffs between school closures and societal impacts like developmental losses, reduced access to meals, and childcare must be carefully considered. Evaluating the policy context and strategies for school reopening are essential for effective education management in a pandemic.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
Economics of Education Economics of Education PANDEMIC ECONOMICS PANDEMIC ECONOMICS CHAPTER 10 CHAPTER 10 1 PANDEMIC ECONOMICS 10
Topics Topics 1. The Important Role of Schools 2. The Impact of a Pandemic on Education 3. Investment in Human Capital: A Model Framework 4. School Reopening 5. Educational Models During a Pandemic 6. Technology and Innovation 2 PANDEMIC ECONOMICS 10
Learning Objectives Learning Objectives After reading this chapter, you will be able to: After reading this chapter, you will be able to: LO1 Consider the important role for schools in society during a pandemic. LO2 Explain why pandemics complicate the educational experience. LO3 Describe the model of investment in human capital. LO4 Assess the costs and benefits of school reopening. LO5 Evaluate different educational models during a pandemic. LO6 Discuss technological advances and innovations in education. 3 PANDEMIC ECONOMICS 10
A pandemic highlights the value of education. When the educational process is disrupted, families, schools, and policymakers attempt to minimize social costs. When a pandemic disrupts the educational environment, teachers, administrators, and policymakers scramble to maintain quality education. 1. The 1. The Important Important Role of Role of Schools Schools 4 PANDEMIC ECONOMICS 10
During a pandemic, one of the first sets of institutions to close is schools. The motivation for school closures is a reduction in transmissions between students. Nevertheless, the closure of schools leads to economic and social costs. 2. The Impact 2. The Impact of a Pandemic of a Pandemic on Education on Education 5 PANDEMIC ECONOMICS 10
Tradeoff Tradeoff When students are not in school, the average number of daily contacts is less than what would occur during regular school hours. A reduction in attendance reverberates throughout society, impacting families, communities, and the economy. School closures must be weighed against: developmental losses for students less access to publicly-supported meals for low-income children the loss of childcare for working parents 6 PANDEMIC ECONOMICS 10
Policy Context Policy Context School closings must be evaluated within the context of an overall shutdown strategy. On the demand side, before schools reopen, students experience online education. Students must have access to technology, including internet connections and electronic devices, which varies according to socio-economic circumstances. On the supply side, before reopening, teachers must provide online education. The change from a full-time, in-person format to an online model creates challenges: teachers must adapt content and deliver it using technology. 7 PANDEMIC ECONOMICS 10
Reopening and Disease Containment Reopening and Disease Containment Schools eventually reopen. But for an effective movement back to traditional education, the disease must be safely contained. Communities must evaluate the costs and benefits of school reopening in the presence of both uncertainty and the prospect of secondary infection waves. 8 PANDEMIC ECONOMICS 10
Lasting Effects Lasting Effects Educational innovations during a pandemic may lead to lasting effects. Teachers may find that the provision of assignments in an online format leads to efficiency gains. Students may find that online learning corresponds to the consumption of technology in other aspects of their lives. Administrators may view the infusion of technology with traditional forms of education as a new hybrid model. 9 PANDEMIC ECONOMICS 10
Education and training play an important role in the development of human capital, the ability of a person to produce goods and services. 3. Investment 3. Investment in Human in Human Capital: A Capital: A The higher the level of human capital, the more that individuals are able to contribute to the economy. Throughout the life cycle, individuals with higher levels of education and training tend to have higher incomes. Model Model Framework Framework These individuals tend to work more, consume more, and accumulate wealth at a faster rate. 10 PANDEMIC ECONOMICS 10
Optimal Investment Path Optimal Investment Path Individuals maximize the present value of their lifetime earnings by allocating their time between work and activities that enhance their human capital. That is, they choose an optimal expenditure path for educational services. 11 PANDEMIC ECONOMICS 10
Technological Efficiency of Education Technological Efficiency of Education The ability to learn is the technological efficiencyof education, a function of both individual effort on the demand side and the provision of educational resources on the supply side. As individual effort and the provision of educational resources rise, the technological efficiency of education increases. Therefore, to the extent that families support students and communities support schools, educational outcomes increase. 12 PANDEMIC ECONOMICS 10
External Benefits External Benefits The presence of external benefits, benefits accruing to people other than the consumers or producers, justify a substantial subsidy to public education. In the presence of external benefits, market allocation is too low from society s perspective. For every level of output, marginal private benefit (MPB), the additional benefit to individuals from consuming another unit, is less than marginal social benefit (MSB), the additional benefit to society. The supply curve equals marginal social cost(MSC), the additional cost to society of supplying one more unit. 13 PANDEMIC ECONOMICS 10
14 PANDEMIC ECONOMICS 10
Analyzing External Benefits Analyzing External Benefits At point c, the quantity of education demanded by students equals Qo, but a lower price does not provide the incentive to provide more education. Therefore, in the presence of external benefits, government intervenes, and the increase in net benefits of the movement from a to b is represented by area abd. With external benefits, government may intervene with a corrective subsidy, a payment to either sellers or buyers that reduces the price to buyers. By subsidizing education, government accounts for MEB. 15 PANDEMIC ECONOMICS 10
Of all the institutions that close during the shutdown interval of a pandemic, few face the same pressure to reopen as schools. 4. Reopening 4. Reopening Schools Schools For students, a lack of consistent education may lead to developmental harm. Working parents, particularly mothers, worry about having to leave the workforce if their children cannot attend school. 16 PANDEMIC ECONOMICS 10
Criteria for Reopening Schools Criteria for Reopening Schools Safety guidelines accompany the process of reopening schools, including testing, the rate of new infections, limited class size, mask-wearing, fresh air circulation, and an incremental approach. The Harvard Global Health Institute proposed a benchmark for reopening schools of fewer than 25 cases per 100,000 people in the community. The World Health Organization proposed a benchmark of a positivity rate of less than 5 percent of all those who are tested over a two-week period. 17 PANDEMIC ECONOMICS 10
Education Gap Education Gap A focus on safety guidelines may reopen schools faster than an alternative but may also widen the education gap if wealthier school districts reopen before others. Education gap: the disparities in performance among different socioeconomic groups. Students without steady tutoring or internet access fall behind their higher- income counterparts. 18 PANDEMIC ECONOMICS 10
BENEFITS OF REOPENING SCHOOLS COSTS OF REOPENING SCHOOLS Potential spread of the disease among Effectiveness of in-person classes members of the educational community Positive functions of schools An increase in the reproduction number Safety from disease and mitigation of risk Logistical and economic challenges Childcare Meeting mental health needs of students Adaptive learning opportunities Blended learning approaches 19 PANDEMIC ECONOMICS 10
During the shutdown interval in a pandemic, students shelter-in-place. To continue to provide an educational service, schools switch to alternative methods of instruction, including online education. 5. Educational 5. Educational Models Models During a During a Pandemic Pandemic 20 PANDEMIC ECONOMICS 10
Level of Education Level of Education The impact of a pandemic on education depends on the level under consideration, primary, secondary, or higher education. First, the degree of infectiousness may differ according to age group. Second, education at different levels creates unique challenges and opportunities. Third, education for younger and older students requires different levels of oversight. 21 PANDEMIC ECONOMICS 10
Primary Education Primary Education Primary education refers to elementary school. In areas where the disease is under control, an in-class experience is most important for younger children. Elementary school students are the least equipped to learn from online education. 22 PANDEMIC ECONOMICS 10
Secondary Education Secondary Education Secondary education refers to middle school and high school. At this level, the students have a greater potential to learn with online education. Organized and motivated students may use this learning environment to complete their school requirements while creating additional opportunities, including projects and activities. 23 PANDEMIC ECONOMICS 10
Higher Education Higher Education Higher education refers to the college and university experience. When the disease spreads, institutions of higher education may choose to close. When they reopen, they must deal with the potential of secondary waves. 24 PANDEMIC ECONOMICS 10
Coordination Problem Coordination Problem If institutions shut down and lose revenue from tuition, fees, and room and board, they may eliminate programs, lay off faculty, and lose their position in the educational hierarchy. These outcomes create a coordination problem among schools. As a result, coordinated responses serve as a logical decision from an economics perspective as the schools may act in concert while not exposing students to public health risks. 25 PANDEMIC ECONOMICS 10
Winner Winner- -take take- -all Markets all Markets With higher education, a pandemic creates the conditions for winner-take-all markets. In these markets, the best economic performers capture the largest share of market rewards while other competitors are left with less. These outcomes widen economic disparities because a few agents are able to increase the amount of income that would otherwise flow to market suppliers in a more equitable manner. This example applies to the university environment but not primary and secondary schools. 26 PANDEMIC ECONOMICS 10
Positive Feedback Effects Positive Feedback Effects A feature of a winner-take-all markets is positive-feedback effectsthat create net benefits for suppliers. With academic instruction, a movement toward a greater level of remote learning occurs slowly, fueled by the need of universities to proceed in a cost-effective manner. A pandemic amplifies this process, accelerating the transition to remote learning. Although the supply of online instruction may be low before a pandemic, an increase in supply accelerates efficient delivery methods. Over time, remote courses compete for approval and students designate some as superior. 27 PANDEMIC ECONOMICS 10
Economies of Scale Economies of Scale In this context, economies of scaleserve as a driving force, meaning the cost savings from an increase in production. Most of the costs of supplying online courses are fixed. When the number of online students increases, costs per student decline. The cost of creating a lecture for an online platform is the same whether a few students or many students watch it. 28 PANDEMIC ECONOMICS 10
Educational Models Educational Models During a pandemic, the provision of education differs according to circumstance. Three alternative models exist: Online education Hybrid education Safe centers for online learning 29 PANDEMIC ECONOMICS 10
Online Education Online Education With online education, teachers provide the educational experience to students in remote locations. They interact with videoconferencing technology. Assignments are posted to internet sites. Teachers mark the assignments remotely, providing feedback when appropriate. 30 PANDEMIC ECONOMICS 10
Hybrid Education Hybrid Education The hybrid model combines face-to-face learning with online instruction. The idea is to engage students but reduce complexity. New assignments, information, and student exploration may occur remotely while the instruction of new concepts and feedback may occur in person. 31 PANDEMIC ECONOMICS 10
Safe Centers for Online Learning Safe Centers for Online Learning This model includes online instruction and space in school. The idea is to provide online education but create a supervised environment. The school serves as a voluntary resource center as opposed to a compulsory attendance requirement. 32 PANDEMIC ECONOMICS 10
Double Shifts Double Shifts During a pandemic, changes in the supply of and demand for educational services depends on the type of education, either traditional or online. Because students shelter-in-place during the shutdown interval, the supply of and demand for traditional education decreases. But the supply of and demand for online education increases. The outcome is a double shiftwhen both supply and demand shift. 33 PANDEMIC ECONOMICS 10
34 PANDEMIC ECONOMICS 10
35 PANDEMIC ECONOMICS 10
The dynamic between the pandemic, economy, and education challenges society, including the risk of bringing students together before disease eradication, establishing the learning process during online education, and determining the optimal time for reopening. 6. Technology 6. Technology But a pandemic also provides an opportunity to use the educational environment as a laboratory. and and A pandemic changes the reality of face-to-face learning. Innovation Innovation Several examples of innovation exist, including apps for health, wastewater testing, and powered-up schools. While the purpose of these procedures is innovation, experiments in an educational setting provide examples for society at large. 36 PANDEMIC ECONOMICS 10
