How can education help tackle rising income inequality?

By Ji Eun Chung
Innovation and Measuring Progress Division, Directorate for Education

See instructions below for how to read the chart

The gap between the rich and poor has widened in OECD countries over the past 30 years. As the latest issue of the OECD’s new brief series Education Indicators in Focus describes, the average income of the richest 10% of people in OECD countries was about nine times greater than the income of the poorest 10% before the onset of the global economic crisis. This ratio was 5 to 1 in the 1980s.

What’s more, existing income inequality may also limit the income prospects of future generations in some countries. In countries with higher income inequality – such as Italy, the United Kingdom, and the United States – a child’s future earnings are likely to be similar to his or her father’s, suggesting that socio-economic background plays a large role in the development of children’s skills and abilities. Meanwhile, in countries with lower income inequality – like Denmark, Finland, and Norway – a child’s future income is not as strongly related to his or her family’s income status. In these countries, the development of children’s skills and abilities has a weaker link with socio-economic factors.

The implications for education policy are clear. Education policies focusing on equity in education may be a particularly useful way for countries to increase earnings mobility between generations and reduce income inequality over time. Countries can work towards this goal by giving equal opportunities to both disadvantaged and advantaged students to achieve strong academic outcomes – laying a pathway for them to continue on to higher levels of education and eventually secure good jobs.

Four top performers on the 2009 PISA reading assessment show the potential of this approach. Canada, Finland, Japan, and Korea all have education systems that put a strong focus on equity – and all have yielded promising results. In each of these countries, relatively few students performed at lower proficiency levels on the PISA reading assessment, and high proportions of students performed better than would be expected, given their socio-economic background.

Yet while each of these countries focuses on equity, they’ve pursued it in different ways. In Japan and Korea, for example, teachers and principals are often reassigned to different schools, fostering more equal distribution of the most capable teachers and school leaders. Finnish schools assign specially-trained teachers to support struggling students who are at risk of dropping out. The teaching profession is a highly selective occupation in Finland, with highly-skilled, well-trained teachers spread throughout the country. In Canada, equal or greater educational resources – such as supplementary classes – are provided to immigrant students, compared to non-immigrant students. This is believed to have boosted immigrant students’ performance.

Income inequality is a challenging issue that demands a wide range of solutions. In a world of growing inequality, focusing on equity in education may be an effective approach to tackle it over the long run.

For more information
On this topic, visit:
Education Indicators in Focus: www.oecd.org/education/indicators
Equity and Quality in Education - Supporting Disadvantaged Students and Schools
On the OECD’s education indicators, visit:
Education at a Glance 2011: OECD Indicators: www.oecd.org/edu/eag2011
Divided we stand: Why inequality keeps rising: www.oecd.org/els/social/inequality
On the OECD’s Indicators of Education Systems (INES) programme, visit:
INES Programme overview brochure

Chart source: Source: D'Addio (2012, forthcoming), “Social Mobility in OECD countries: Evidence and Policy Implications”; OECD (2008), Growing Unequal?, www.oecd.org/els/social/inequality/GU; OECD Income distribution database.


How to read the chart: This chart shows the relationship between earnings mobility between generations of a family, and the prevalence of income inequality in different countries. Overall, countries with higher levels of income inequality tend to have lower earnings mobility between generations, while countries with lower levels of income inequality tend to have higher earnings mobility.

Improving equity in education: a critical challenge

by Ben Levin
Professor University of Toronto and Canada Research Chair in Education Leadership and Policy

Improving equity in student outcomes remains a critical challenge for every country in the OECD.  Even those countries with the lowest levels of inequity must still be concerned with gaps in outcomes that are not related to students’ motivation and capacity, while in other countries the inequities are so large as to pose a fundamental challenge to ongoing security and prosperity.

The new report, Equity and Quality in Education: Supporting Disadvantaged Students and Schools, provides a cogent analysis and many ideas for addressing these issues.  The report provides a blueprint for any country that wishes to make genuine progress in promoting equity while also improving quality.  These ideas are well grounded in the best available research evidence (though in some cases that evidence is not as strong as one would want, simply due to insufficient research on many important educational issues).

The larger issue is whether countries will have the will and skill to make these changes.  As outlined in my 2008 book, ‘How to Change 5000 Schools’, knowing what to do is important but not enough.  In many cases we already know what to do, but we do not do it.  As a simple example, consider physical exercise and good eating habits.  Everyone knows these are essential to health, yet many people simply do not do them.  How much more difficult to make changes in a large and complex institution like a school system!

There are two aspects to effective implementation of the right changes.  The first is whether the will exists to make the changes.  In many cases the beneficiaries of the status quo will be vocal in opposing anything that they think might diminish the relative advantage of their children.  Less streaming is one good example of this situation, often opposed by parents and teachers who benefit from a streamed system despite the strong evidence that this practice is, overall, a bad one.  There can be very difficult politics around making some of the changes that would actually benefit students.  These conflicts cannot be ignored; they must be faced directly.

Second, and just as important, is whether systems have the capacity to bring real change about.  As the report notes, real improvement requires real changes in classroom practice.  These do not occur through issuing policy statements, developing new curricula, or even through changes in accountability and testing.  Changing people’s daily behavior takes sustained and relentless attention to the way daily work is done.  This attention must extend over time and take into account everything the organization does.  Very few countries have this capacity.  Very few ministries of education have much capacity to lead and support school improvement.  Very few school leaders know how to do this work.

Countries that are serious about greater equity – and greater quality – will need to consider carefully how they can support real and lasting implementation of the necessary changes.  Luckily, the OECD does offer some examples, in its higher performing countries, of the kinds of organizational measures that are needed to achieve these important goals.  We know this can be done; the question is how many countries will make the required effort.

Links:
More information about OECD work on equity in education: www.oecd.org/edu/equity
Executive Summary: Equity and Quality in Education - Supporting Disadvantaged Students and Schools

Photo: School wall mural painting by students, Ontario