Solving the Achievement Gap by Stuart S. Yeh

Author:Stuart S. Yeh
Language: eng
Format: epub
Publisher: Palgrave Macmillan US, New York

Persistent Effects?

Chetty et al. assumed, arbitrarily, that the 1.34 percent increase in earnings observed at age 28 would persist at every age throughout an adult’s life, resulting in large cumulative lifetime gains in earnings: “All values in these figures are based on our estimate that a one standard deviation increase in true teacher value-added increases earnings by 1.34 percent.”92 This assumption is not consistent with evidence that a teacher’s impact quickly fades. Other researchers employed stronger analytical methods and found that the fade-out is large, quick, and any persistent effect is small. For example, Kane and Staiger93 employed random-assignment of teachers to students and found that half of a teacher’s impact fades after one year and an additional 50 percent fades after the second year, implying that no more than 25 percent of a teacher’s impact persists after two years.94 Therefore, Chetty et al.’s ad hoc assumption may be questioned. Perhaps a more reasonable assumption, one that is more consistent with the evidence regarding fade-out, is that the 1.34 percent increase in income observed at age 28 fades by 50 percent in each subsequent year.95

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