Read The Times Australia

Daily Bulletin

Why we should (carefully) consider paying kids to learn

  • Written by: Richard Holden, Professor of Economics, UNSW

Over the past 15 years, we’ve seen a decline in the performance of Australian school students on international tests. On the Programme for International Student Assessment (PISA), Australia ranks a disappointing 20th in mathematics and 12th in reading. However you feel about standardised tests like NAPLAN and PISA, it certainly isn’t good news that we’re falling behind internationally.

Why we should (carefully) consider paying kids to learn Australian PISA Scores. ACER

Over the same period, there has also been a revolution in education research through the use of randomised controlled trials to assess the effectiveness of different education policies. All manner of things have been tried – everything from smaller class sizes to intensive tutoring. And now paying kids to learn.

My coauthors and I did just that in two sets of experiments in Houston, Texas and Washington, D.C. We found if kids are paid for things such as attendance, good behaviour, short-cycle tests, and homework they were 1% more likely to go to school, committed 28% fewer behavioural infractions, and were 13.5% more likely to finish their homework.

Read more: Speaking with: Andrew Leigh on why we need more randomised trials in policy and law

This led to a big increase in kids performing at a proficient level in mathematics and reading. This cost money – we distributed roughly AU$7 million in incentives to 6,875 kids. But measured financially, the approach where we gave students money for a number of things (such as behaviour, attendance and academic tasks) produced a 32% annual return on investment.

Our experiments

In Houston, we paid 1,734 fifth graders to do maths homework problems. We paid the parents too, if their child did their homework.

Some 50 schools were given educational software that fit in with the curriculum. Half (25) of those schools were randomly selected to be in the “treatment group”. This group of school kids got AU$2.80 per homework problem they mastered. Parents of the children got AU$2.80 per problem mastered, and teachers were eligible for bonuses of up to AU$14,000.

The 25 control schools got the identical educational software and training, but no financial incentives.

This randomised controlled trial allows for a simple test of the effect of financial incentives. This works because there are a large number of students in both the treatment and control group, and because they were randomly assigned. Differences in other factors like innate ability, home background, or parental involvement average out.

Why we should (carefully) consider paying kids to learn We should be open minded about trying similar trials in Australia. from www.shutterstock.com

So to understand the true, causal effect of the cash incentives on test scores we can just look at the difference in average test scores between the treatment and control kids.

This is the same principle underlying pharmaceutical trials. For example, some patients might get heart medication, while others get a placebo (a sugar pill). Researchers then look at the difference in heart functioning to figure out whether the medication works.

This approach is the gold standard for understanding the true effect of an intervention – in medicine, economics, or education.

The financial incentives we used in Houston led to children doing lots more homework, and to a fairly large increase in performance on standardised maths tests. But there was an almost equal offsetting decline in performance on reading tests.

The children responded to the incentives all right – by shifting their efforts from reading, which they didn’t receive incentives for, to maths.

Read more: The best way to boost the economy is to improve the lives of deprived students

The most able 20% of students, based on their prior-year test scores, did way better in maths and no worse in reading. Incentives for the least able 20% of students were a disaster. They did lots more maths problems, did no better on maths tests, and far worse on reading tests.

By contrast, in Washington D.C. we provided incentives for sixth, seventh and eighth grade students on multiple measures, including: attendance, behaviour, short-cycle assessments, and two other variable measures chosen by each school. This led to a 17% increase in students scoring at or above proficiency for their grade in maths and a 15% increase in reading proficiency.

Is it ethical to pay kids to learn?

Paying children to study and behave might sound radical, or even unethical. Yet we provide incentives to kids all the time. Most parents use a combination of carrots and sticks as motivation already, such as screen time or treats.

A legitimate concern is that cash incentives might affect intrinsic motivation and turn learning into a transaction rather than a joy. The evidence from our study showed intrinsic motivation actually increased.

Perhaps the harder question is whether it’s ethical to use an approach that won’t help less advantaged students perform better and develop a love of learning.

The path forward

Nearly two decades of research in the US using randomised control trials has identified the positive causal effect of a range of interventions. These include high-dose tutoring, out-of-school and community-based reading programs, smaller class sizes, better teachers, a culture of high expectations and, yes, financial incentives.

Read more: Smaller class sizes improve student achievement

In Australia, we should be open minded and look at the evidence. This will involve carefully designed randomised trials in Australian schools to determine what really works, and what the return on investment is.

Authors: Richard Holden, Professor of Economics, UNSW

Read more http://theconversation.com/why-we-should-carefully-consider-paying-kids-to-learn-111624

Business News

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

What Businesses Can Do to Make Sustainability More Practical Day to Day

Sustainability can sound like a huge corporate project, something tied to annual reports, long-term ...

The Hidden Logistics Behind a Smooth-Running Construction Site

A construction site can look chaotic from the outside. There are machines moving in different direct...

When a Temporary Work Arrangement Starts Looking More Permanent

A lot can change once someone has spent a few years working in the same place. What began as a fixed...

The Real Cost of Launching a Food, Beverage or Supplement Brand in Australia

"How much will it cost to manufacture my product?" is usually the first question a founder asks, a...

Why Aussie Car Owners Are Switching to Paint Protection Film Over Traditional Waxing

For decades, a tin of carnauba wax and a Sunday afternoon were the standard formula for keeping a ...

How Wide Should Running Shoes Be? Signs Your Shoes Are Too Narrow

Running shoes should be wide enough for the forefoot and toes to sit naturally under load, but not...

Trail Running Shoes vs Hiking Shoes: Which Is Better for Australian Trails?

Australia does not offer one neat definition of a “trail.” A weekend walk might mean a hard-packed...

Architectural Window Shading: Solutions for Triangle Blinds, Raked Glazing, and High Ceilings

Mastering Light and Privacy with Specialized Window Coverings Modern architectural de...

From Suburban Streets to Modern Events: Why Australians Still Love the Ice Cream Truck

Did you know Australia consistently ranks among the world's highest ice cream-consuming countries? ...