Category: PSE Outcomes

  • That Was The Quarter That Was, Summer 2025

    That Was The Quarter That Was, Summer 2025

    Welcome to TWTQTW for June-September. Things were a little slow in July, but with back to school happening in most of the Northern Hemisphere sometime between last August and late September, the stories began pouring in. 

    You might think that “back to school” would deliver up lots of stories about enrolment trends, but you’d mostly be wrong. While few countries are as bad as Canada when it comes to up-to date enrolment data, it’s a rare country that can give you good enrolment information in September. What you tend to get are what I call “mood” pieces looking backwards and forwards on long-term trends: this is particularly true in places like South Korea, where short-term trends are not bad (international students are backfilling domestic losses nicely for the moment) but the long-term looks pretty awful. Taiwan, whose demographic crisis is well known, saw a decline of about 7% in new enrolments, but there were also some shock declines in various parts of the world: Portugal, Denmark, and – most surprisingly – Pakistan

    Another perennial back-to-school story has to do with tuition fees. Lots of stories here. Ghana announced a new “No Fees Stress” policy in which first-year students could get their fees refunded. No doubt it’s a policy which students will enjoy, but this policy seems awfully close in inspiration to New Zealand’s First Year Free policy which famously had no effect whatsoever on access. But, elsewhere, tuition policy seems to be moving in the other direction. In China, rising fees at top universities sparked fears of an access gap and, in Iran, the decision of Islamic Azad University (a sort-of private institution that educates about a quarter of all Iranian youth) to continue raising tuition (partly in response to annual inflation rates now over 40%) has led to widespread dissatisfaction. Finally, tuition rose sharply in Bulgaria after the Higher Education Act was amended to link fees to government spending (i.e. more government spending, more fees). After student protests, the government moved to cut tuition by 25% from its new level, but this still left tuition substantially above where it was the year before.

    On the related issue of Student Aid, three countries stood out. The first was Kazakhstan, where the government increased domestic student grants increased by 61% but also announced a cut in the government’s famous study-abroad scheme which sends high-potential youth to highly-ranked foreign universities. 

    Perhaps the most stunning change occurred in Chile, where two existing student aid programs were replaced by a new system called the Fondo para la Educación Superior (FES), which is arguably unique in the world. The idea is to replace the existing system of student loans with a graduate tax: students who obtain funds through the FES will be required to pay a contribution of 10% of marginal income over about US$515/week for a period of twenty years. In substance, it is a lot like the Yale Tuition Postponement Plan, which has never been replicated at a national level because of the heavy burden placed on high income earners. A team from UCL in London analyzed the plan and suggested that it will be largely self-supporting – but only because high-earning graduates in professional fields will pay in far more than they receive, thus creating a question of potential self-selection out of the program.

    In Colombia, Congress passed a law mandating ICETEX (the country’s student loan agency which mostly services students at private universities) to lower interest rates, offer generous loan forgiveness and adopt an income-contingent repayment system. However, almost simultaneously, the Government of Gustavo Petro actually raised student loan interest rates because it could no longer afford to subsidize them. This story has a ways to run, I think.

    On to the world government cutbacks. In the Netherlands, given the fall of the Schoof government and the call for elections this month, universities might reasonably have expected to avoid trouble in a budget delivered by a caretaker government. Unfortunately, that wasn’t the case: instead, the 2026 imposed significant new cuts on the sector. In Argentina, Congress passed a law that would see higher education spending rise to 1% of GDP (roughly double the current rate). President Milei vetoed the law, but Congress overturned President Milei’s veto. In theory, that means a huge increase in university funding. But given the increasing likelihood of a new economic collapse in Argentina, it’s anyone’s guess how fulfilling this law is going to work out.

    One important debate that keeps popping up in growing higher education systems is the trade-off between quality and quantity with respect to institutions: that is, to focus money on a small number of high-quality institutions or a large number of, well, mediocre ones. Back in August, the Nigerian President, under pressure from the National Assembly to open hundreds of new universities to meet growing demand, announced a seven-year moratorium on the formation of new federal universities (I will eat several articles of clothing if there are no new federal universities before 2032). Conversely, in Peru, a rambunctious Congress passed laws to create 22 new universities in the face of Presidential reluctance to spread funds too thinly. 

    The newson Graduate Outcomes is not very good, particularly in Asia. In South Korea, youth employment rates are lower than they have been in a quarter-century, and the unemployment rate among bachelor’s grads is now higher than for middle-school grads. This is leading many to delay graduation. The situation in Singapore is not quite as serious but is still bad enough to make undergraduates fight for spots in elite “business cubs”. In China, the government was sufficiently worried about the employment prospects of the spring 2025 graduating class that it ordered some unprecedented measures to find them jobs, but while youth employment stayed low (that is, about 14%) at the start of the summer, the rate was back up to 19% by August. Some think these high levels of unemployment are changing Chinese society for good. Over in North America, the situation is not quite as dire, but the sudden inability of computer science graduates to find jobs seems deeply unfair to a generation that was told “just learn how to code”. 

    Withrespect to Research Funding and Policy, the most gobsmacking news came from Switzerland where the federal government decided to slash the budget of the Swiss National Science Foundation (SNSF) by 20%. In Australia, the group handling the Government’s Strategic Examination of Research and Development released six more “issue” papers which, amongst other things, suggested forcing institutions to choose particular areas of specialization in areas of government “priority”, a suggestion which was echoed in the UK both by the new head of UK Research and Innovation and the President of Universities UK.     

    But, of course, in terms of the politicization of research, very little can match the United States. In July, President Trump issued an Executive Order which explicitly handed oversight of research grants at the many agencies which fund extramural research to political appointees who would vet projects to ensure that they were in line with Trump administration priorities. Then, on the 1st of October (technically not Q3, but it’s too big a story to omit), the White House floated the idea of a “compact” with universities, under which institutions would agree to a number of conditions including shutting down departments that “punish, belittle” or “spark violence against conservative ideas” in return for various types of funding. Descriptions of the compact from academics ranged from “rotten” to “extortion”. At the time of writing, none of the nine institutions to which this had initially been floated had given the government an answer.

    And that was the quarter that was.

     

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  • Education at a Glance 2025, Part 2

    Education at a Glance 2025, Part 2

    Three weeks ago, the Organization for Economic Co-operation and Development (OECD) released its annual stat fest, Education at a Glance (see last week’s blog for more on this year’s higher education and financing data). The most interesting thing about this edition is that the OECD chose to release some new data from the recent Programme for International Assessment of Adult Competencies (PIAAC) relating to literacy and numeracy levels that were included in the PIAAC 2013 release (see also here), but not in the December 2024 release.   

    (If you need a refresher: PIAAC is kind of like the Programme for International Student Assessment (PISA) but for adults and is carried out once a decade so countries can see for themselves how skilled their workforces are in terms of literacy, numeracy, and problem-solving).

    The specific details of interest that were missing in the earlier data release were on skill level by level of education (or more specifically, highest level of education achieved). OECD for some reason cuts the data into three – below upper secondary, upper secondary and post-secondary non-tertiary, and tertiary. Canada has a lot of post-secondary non-tertiary programming (a good chunk of community colleges are described this way) but for a variety of reasons lumps all college diplomas in with university degrees in with university degrees as “tertiary”, which makes analysis and comparison a bit difficult. But we can only work with the data the OECD gives us, so…

    Figures 1, 2 and 3 show PIAAC results for a number of OECD countries, comparing averages for just the Upper Secondary/Post-Secondary Non-Tertiary (which I am inelegantly going to label “US/PSNT”) and Tertiary educational attainment. They largely tell similar stories. Japan and Finland tend to be ranked towards the top of the table on all measures, while Korea, Poland and Chile tend to be ranked towards the bottom. Canada tends to be ahead of the OECD average at both levels of education, but not by much. The gap between US/PSNT and Tertiary results are significantly smaller on the “problem-solving” measure than on the others (which is interesting and arguably does not say very nice things about the state of tertiary education, but that’s maybe for another day). Maybe the most spectacular single result is that Finns with only US/PSNT education have literacy scores higher than university graduates in all but four other countries, including Canada.

    Figure 1: PIAAC Average Literacy Scores by Highest Level of Education Attained, Population Aged 25-64, Selected OECD Countries

    Figure 2: PIAAC Average Numeracy Scores by Highest Level of Education Attained, Population Aged 25-64, Selected OECD Countries

    Figure 3: PIAAC Average Problem Scores by Highest Level of Education Attained, Population Aged 25-64, Selected OECD Countries

    Another thing that is consistent across all of these graphs is that the gap between US/PSNT and tertiary graduates is not at all the same. In some countries the gap is quite low (e.g. Sweden) and in other countries the gap is quite high (e.g. Chile, France, Germany). What’s going on here, and does it suggest something about the effectiveness of tertiary education systems in different countries (i.e. most effective where the gaps are high, least effective where they are low)?

    Well, not necessarily. First, remember that the sample population is aged 25-64, and education systems undergo a lot of change in 40 years (for one thing, Poland, Chile and Korea were all dictatorships 40 years ago). Also, since we know scoring on these kinds of tests decline with age, demographic patterns matter too. Second, the relative size of systems matters. Imagine two secondary and tertiary systems had the same “quality”, but one tertiary system took in half of all high school graduates and the other only took in 10%. Chances are the latter would have better “results” at the tertiary level, but it would be entirely due to selection effects rather than to treatment effects.

    Can we control for these things? A bit. We can certainly control for the wide age-range because OECD breaks down the data by age. Re-doing Figures 1-3, but restricting the age range to 25-34, would at least get rid of the “legacy” part of the problem. This I do below in Figures 4-6. Surprisingly little changes as a result. The absolute scores are all higher, but you’d expect that given what we know about skill loss over time.  Across the board, Canada remains just slightly ahead of the OECD average. Korea does a bit better in general and Italy does a little bit worse, but other than the rank-order of results is pretty similar to what we saw for the general population (which I think is a pretty interesting finding when you think of how much effort countries put in to messing around with their education systems…does any of it matter?)

    Figure 4: PIAAC Average Literacy Scores by Highest Level of Education Attained, Population Aged 25-34, Selected OECD Countries

    Figure 5: PIAAC Average Numeracy Scores by Highest Level of Education Attained, Population Aged 25-34, Selected OECD Countries

    Figure 6: PIAAC Average Problem Scores by Highest Level of Education Attained, Population Aged 25-34, Selected OECD Countries

    Now, let’s turn to the question of whether or not we can control for selectivity. Back in 2013, I tried doing something like that, but it was only possible because OECD released PIAAC scores not just as averages but also in terms of quartile thresholds, and that isn’t the case this time. But what we can do is look a bit at the relationship between i) the size of the tertiary system relative to the size of the US/PSNT system (a measure of selectivity, basically) and ii) the degree to which results for tertiary students are higher than those for US/PSNT. 

    Which is what I do in Figure 7. The X-axis here is selectivity [tertiary attainment rate ÷ US/PSNT attainment rate rate] for 25-34 year olds on (the further right on the graph, the more open-access the system), and the Y-axis is PIAAC gaps Σ [tertiary score – US/PSNT score] across the literacy, numeracy and problem-solving measures (the higher the score, the bigger the gap between tertiary and US/PSNT scores). It shows that countries like Germany, Chile and Italy are both more highly selective and have greater score gaps than countries like Canada and Korea, which are the reverse. It therefore provides what I would call light support for the theory that the less open/more selective a system of tertiary education is, the bigger the gap tertiary between Tertiary and US/PSNT scores on literacy, numeracy and problem-solving scores.  Meaning, basically, beware of interpreting these gaps as evidence of relative system quality: they may well be effects of selection rather than treatment.

    Figure 7: Tertiary Attainment vs. PIAAC Score Gap, 25-34 year-olds

    That’s enough PIAAC fun for one Monday.  See you tomorrow.

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