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Underinvestment In Employer Training: Is A Mandate To Spend On Training The Answer?, John H. Bishop
Underinvestment In Employer Training: Is A Mandate To Spend On Training The Answer?, John H. Bishop
John H Bishop
American employers and their workers under invest in employer training. Under investment occurs because training generates externalities, because the tax system is biased against training investments, and because most workers are unable to finance general training because they lack access to loans to finance consumption during periods of heavy investment in training. School based occupational training ameliorates the under investment problem somewhat but it is not a complete answer to the problem. The French approach of requiring firms to spend at least 1.4 percent of their wage bill on continuing training of employees (if they are to avoid paying a …
Achievement, Test Scores And Relative Wages, John H. Bishop
Achievement, Test Scores And Relative Wages, John H. Bishop
John H Bishop
[Excerpt] This article examines the causal connections between these two phenomena: changes in the academic achievement of high school graduates and changes in the payoff to college. Four specific questions are addressed. The questions and the answers generated by our examination of the data are outlined below[...]
Toward More Valid Evaluations Of Training Programs Serving The Disadvantaged, John H. Bishop
Toward More Valid Evaluations Of Training Programs Serving The Disadvantaged, John H. Bishop
John H Bishop
The paper challenges the widespread assumption that the wage effects of federal training programs are reliable and unbiased estimates of productivity effects and social benefits. Evidence is presented that the reputations of government training programs are unreliable and that employers stigmatize those eligible for TJTC and CETA OJT contracts. Graduates of classroom training programs which are known to be funded by JTP A are likely to be similarly stigmatized. TJTC eligibles are seriously underpaid by employers and JTPA graduates may experience a similar fate. Consequently, the true effects of JTP A on the productivity of disadvantaged workers may be considerably …
Educational Reform And Technical Education?, John H. Bishop
Educational Reform And Technical Education?, John H. Bishop
John H Bishop
[Excerpt] Even though educational reform marches under a banner of economic renewal, the school subjects that appear to be most directly related to worker productivity-- business education, vocational education, economics, computers--have received little attention from reformers. The five "core" subjects proposed for periodic assessment are English, mathematics, science, history/civics and geography. Yet, if competitiveness is the objective, it is not clear why geography, a subject that is not taught in most American universities, has higher priority than subjects like computers, economics, management and technology? Some of the reform reports have expressed doubt about the economic benefits of vocational education (Committee …
Vocational Education For At-Risk Youth: How Can It Be Made More Effective?, John H. Bishop
Vocational Education For At-Risk Youth: How Can It Be Made More Effective?, John H. Bishop
John H Bishop
[Excerpt] Minority youth and non-minority youth from economically disadvantaged backgrounds have great difficulty finding steady jobs that provide real training and advancement opportunities. In October 1986, only 32 percent of black youth who had recently dropped out of high school had a job and only 42 percent of the previous June's graduates not attending college had a job. For Hispanics, only 46 percent of recent drop outs had a job and only 65 percent of graduates not attending college had a job. While the employment rates among white youth were higher (47 percent for drop outs and 71 percent for …
Are National Exit Examinations Important For Educational Efficiency?, John H. Bishop
Are National Exit Examinations Important For Educational Efficiency?, John H. Bishop
John H Bishop
“This paper analyses effects of national or provincial exit examinations on education quality. On theoretical grounds, the paper argues that such examinations should increase high school achievement, particularly in examination subjects, and that teachers and students and parents and school administrators should focus more on academic achievement when making school-quality decisions. On the negative side, exit examinations may lead to a tendency to concentrate on learning facts, rather than understanding contexts.”
Department Of Labor Testing: Seizing An Opportunity To Increase The Competitiveness Of American Industry And To Raise The Earnings Of American Workers, John H. Bishop
John H Bishop
[Excerpt] The professionalism that the American military recently exhibited in the Persian Gulf is in no small part due to care with which it selects, assigns and trains its soldiers. The military's success in preparing this highly skilled workforce was made possible by decades of research into occupational competency assessment, aptitude test development and validity research. The Department of Labor is also a world leader in the development and validation of employment aptitude tests and there is now an opportunity for this expertise to be implemented in ways that can enhance the nations's competitiveness and improve the standard of living …
Academic Learning And National Productivity, John H. Bishop
Academic Learning And National Productivity, John H. Bishop
John H Bishop
[Excerpt] Concern about slackening productivity growth and deteriorating competitiveness has resulted, in many nations, in a new public focus on the quality and rigor of the elementary and secondary education received by the nation's front line workers. Higher order thinking and problem solving skills are believed to be in particularly short supply so much attention has been given to mathematics and science education because it is thought that these subjects are particularly relevant to their development.
The Productivity Consequences Of What Is Learned In High School, John H. Bishop
The Productivity Consequences Of What Is Learned In High School, John H. Bishop
John H Bishop
[Excerpt] Another way of evaluating American performance in math and Science is to make comparisons with the upper secondary students of other nations. In the 196Os, the low ranking of American students in such comparisons was defended by citing the fact that higher proportions of American youth took the international test. This is no longer the case. Figures 1 to 4 plot the scores in Algebra, Biology, Chemistry and Physics against proportion of the 18-year old population in the types of courses to which the international test was administered. Where large proportions of the age cohort took the test, lower …
Incentives To Study And The Organization Of Secondary Instruction, John H. Bishop
Incentives To Study And The Organization Of Secondary Instruction, John H. Bishop
John H Bishop
[Excerpt] The Problem: The scientific and mathematical competence of American high school students is generally recognized to be low. The National Assessment of Educational Progress (NAEP) reports that 92 percent of high school seniors cannot "integrate specialized scientific information" and do not have "the capacity to apply mathematical operations in a variety of problem settings." (NAEP 1988a p. 51, 1988b p. 42). There is a large gap between the science and math competence of young Americans and their counterparts overseas, particularly at the end of high school. The Americans who participated in the Second International Math Study were high school …
Are Early Investments In Computer Skills Rewarded In The Labor Market? , Ferran Mane, John H. Bishop
Are Early Investments In Computer Skills Rewarded In The Labor Market? , Ferran Mane, John H. Bishop
John H Bishop
The paper assesses the relationship between investments in computer skills by adolescents and earnings at age 26. The heaviest investors earned 9 to 16 percent more than otherwise equivalent NELS-88 classmates. The payoff to early computer skills was substantial in jobs involving intense and complex uses of computers; negligible when computers were not used at work. It was non-gaming use of computers outside of school that enhanced future earnings, not playing video/computer games—which lowered earnings. Children in low SES families invested less in computer skills and thus benefited less from the job opportunities generated by the digital revolution.
Employer Training And Skill Shortages: A Review Of The State Of Knowledge With Recommendations For Future Research By The Department Of Labor, John H. Bishop
Employer Training And Skill Shortages: A Review Of The State Of Knowledge With Recommendations For Future Research By The Department Of Labor, John H. Bishop
John H Bishop
"This report proposes that the Department of Labor undertake a program of research designed to inform the policy debate related to skill shortages and the role of employer training in ameliorating them. The paper reviews the currently available evidence and then proposes new research on seven questions."
Does The Targeted Jobs Tax Credit Create Jobs At Subsidized Firms?, John H. Bishop, Mark Montgomery
Does The Targeted Jobs Tax Credit Create Jobs At Subsidized Firms?, John H. Bishop, Mark Montgomery
John H Bishop
This paper uses the results of a survey of more than 3500 private employers to determine whether use of the Targeted Jobs Tax Credit (TJTC) alters the level of a fIrm's employment and/or whom the fInn hires. We estimate that each subsidized hire generates between .13 and .3 new jobs at a participating fIrm. Use of the program also appears to induce employers to hire more young workers (age 25 and under). Our results suggest, however, that at least 70% of the tax credits granted employers are payments for workers who would have been hired even without the subsidy. Such …
The Motivation Problem In American High Schools, John H. Bishop
The Motivation Problem In American High Schools, John H. Bishop
John H Bishop
American high school students devote much less time and energy to their studies than the students of other nations. The cause of the lack of motivation is the lack of rewards for studying hard and for taking rigorous courses. This occurs for four reasons. First, the u.S. economy fails to give academic achievement its due reward in the labor market and rewards instead credentials that signify time spent, rather than competencies acquired. In most other countries credentials are more closely related to competencies obtained, so school achievement is a more important determinants of prestige and income as an adult than …
What's Wrong With American Secondary Schools: Can State And Federal Governments Fix It?, John H. Bishop
What's Wrong With American Secondary Schools: Can State And Federal Governments Fix It?, John H. Bishop
John H Bishop
[Excerpt] The poor performance of American students is sometimes blamed on the nation's "diversity". Many affluent parents apparently believe that their children are doing acceptably by international standards. This is not the case. In Stevenson, Lee and Stigler's (1986) study of 5th grade math achievement, the best of the 20 classrooms sampled in Minneapolis was outstripped by every single classroom studied in Sendai, Japan and by 19 of the 20 classrooms studied in Taipeh, Taiwan. The nation's top high school students rank far behind much less elite samples of students in other countries. In mathematics the gap between Japanese and …
The Impact Of Previous Training In Schools And On Jobs On Productivity, Required Ojt, And Turnover Of New Hires, John H. Bishop
The Impact Of Previous Training In Schools And On Jobs On Productivity, Required Ojt, And Turnover Of New Hires, John H. Bishop
John H Bishop
[Excerpt] Workers who are assigned to the same job and paid the same wage often differ greatly in productivity. Coefficients of variation of individual productivity in specific jobs based on hard measures of physical output average .144 for factory operatives, .35 for sales clerks and .28 for craft workers (Hunter, Schmidt and Judiesch 1988). This paper examines whether and to what extent variations in productivity (and other job outcomes) across workers doing the same job at the same firm can be predicted by information on the background and training of the individual worker.
Improving Job-Worker Matching In The Us Labor Market: What Is The Role Of The Employment Service?, John H. Bishop
Improving Job-Worker Matching In The Us Labor Market: What Is The Role Of The Employment Service?, John H. Bishop
John H Bishop
[Excerpt] Educational and political leaders are calling for improvements in the signalling and certification of academic and occupational skills to the labor market. The Secretary's Commission on Achieving Necessary Skills (SCANS), for example, has recommended a national system for assessing individual accomplishments and work readiness that would be "designed so that, when teachers teach and students study, both are engaged in authentic practice of valued competencies." For educational reformers, better signalling is not an end in itself but a means of inducing students, parents, teachers and school boards to place greater priority on learning and of reforming the content and …
Some Thoughts On The Cost Effectiveness Of Graduate Education Subsidies, John H. Bishop
Some Thoughts On The Cost Effectiveness Of Graduate Education Subsidies, John H. Bishop
John H Bishop
[Excerpt] How much should doctorate training be subsidized? The answer proposed is, "Doctorate training should be subsidized to the extent and only to the extent that it produces externality or public benefits – i.e. benefits received by people other than the one receiving the diploma." This value judgment derives from three propositions: (1) In general, an adult knows better than anyone else what is best for himself; (2) the price (measured in both time and money) he is willing to pay for graduate education is the best measure of how much he values it relative to other offerings; and (3) …
Productivy Growth And Tenure: A Test Of On-The-Job Training Theories Of Wage And Productivy Growth, John H. Bishop, Stan Stephenson
Productivy Growth And Tenure: A Test Of On-The-Job Training Theories Of Wage And Productivy Growth, John H. Bishop, Stan Stephenson
John H Bishop
[Excerpt] Studies have found consistently that there is a strong positive correlation between a worker's tenure with a firm and that individual's wage rate. Becker's (1975) on-the-job training (OJT) model is the most widely accepted explanation for this association. The OJT model posits that new employees receive training early in their tenure, which raises their productivity both in and outside the firm. Competition forces the employer to pay employees who have completed this training at least as much as they are worth outside the firm less transfer costs. Jobs that offer such training are more attractive than jobs that do …
On-The-Job Training Of New Hires, John H. Bishop
On-The-Job Training Of New Hires, John H. Bishop
John H Bishop
This paper presents an analysis of a unique data set containing measures of the time devoted to training during the first three months on a job and the productivity consequences of that training. The major findings derived from the analysis of the data on new hire training may be summarized as follows.
Why Are Wage Profiles So Flat During The First Year On A Job?, John H. Bishop, Suk Kang
Why Are Wage Profiles So Flat During The First Year On A Job?, John H. Bishop, Suk Kang
John H Bishop
This paper presents evidence that productivity net of general training costs rise 4 or 5 times more rapidly than wage rates during the first 2 years on a job. This occurs for three reasons. First, sorting, high job search costs and the reputational damages that result from premature separations cause workers to prefer front loaded compensation packages which reduce the likelihood of involuntary terminations. Second, due to progressive income taxation and poor access to credit, workers discount the future more heavily than employers. Front-loading compensation is, therefore, a relatively cheap way for employers to attract top quality new hires. Finally, …
Occupational Competency As A Predictor Of Labor Market Performance, John H. Bishop
Occupational Competency As A Predictor Of Labor Market Performance, John H. Bishop
John H Bishop
[Excerpt] The paper examines the suitability of occupational competency measurement as a device for enhancing the accountability of vocational education programs. In order for occupational competency tests to be used as program performance measures, they must be demonstrated to be valid predictors of labor market outcomes like earnings and wage rates and of job performance in appropriate occupations. The paper undertakes this task.
Scientific Illiteracy: Causes, Costs And Cures, John H. Bishop
Scientific Illiteracy: Causes, Costs And Cures, John H. Bishop
John H Bishop
[Excerpt] This article examines the causes of the learning deficits in science, math and technology, evaluates their social costs and then recommends policy measures for remedying the problems identified. Following the American Association for the Advancement of Science's Science for All Americans report, I define the domain of "science" very broadly to include mathematics and technology along with the natural sciences. To avoid confusing readers accustomed to the narrower definition of science, broadly defined science is referred to as science, mathematics and technology.
The French Mandate To Spend On Training: A Model For The United States?, John H. Bishop
The French Mandate To Spend On Training: A Model For The United States?, John H. Bishop
John H Bishop
American employers and workers underinvest in employer training. Underinvestment occurs because training generates externalities, because turnover is excessive, because the tax system discourages training investment, and because workers lack access to loans that would allow them finance heavy investments in training (Bishop 1991). During the election campaign, President Clinton proposed stimulating training by requiring employers to spend some minimum percentage of their wage bill on training or else be subject to a special tax. France has had such a mandate since 1972, so the design of an American training mandate is likely to benefit from a careful examination of the …
Why Students Don't Study: How You Can Make Studying Pay Off For Them, John H. Bishop
Why Students Don't Study: How You Can Make Studying Pay Off For Them, John H. Bishop
John H Bishop
American high school students devote much less time and energy to their studies than the students of other nations. The cause of the lack of motivation is the lack of rewards for studying hard and for taking rigorous courses. This occurs for four reasons. First, the U.S. economy fails to give academic achievement its due reward in the labor market and rewards instead credentials that signify time spent, rather than competencies acquired. In most other countries credentials are more closely related to competencies obtained, so competencies acquired rather than just time spent are a more important determinant of prestige and …
Employment Testing And Incentives To Learn, John H. Bishop
Employment Testing And Incentives To Learn, John H. Bishop
John H Bishop
Employment tests predict job performance because they measure or are correlated with a large set of malleable developed abilities which are causally related to productivity. Our economy currently under-rewards the achievements that are measured by these tests. Consequently, economic incentives to study hard in high school are minimal and this absence of incentives has contributed to the low levels of achievement in math and science. The paper concludes with a discussion of ways in which employment tests can strengthen incentives to learn.
In Search Of A Niche, John H. Bishop
In Search Of A Niche, John H. Bishop
John H Bishop
"As enrollment in secondary vocational education programs declines and employers re-evaluate the attributes needed for success in today’s job market, some observers of the U.S. education system have called for schools to limit – or even eliminate – the teaching of occupational skills. Does this mean employers don’t reward such training?"
The Economic Consequences Of Schooling And Learning, John H. Bishop
The Economic Consequences Of Schooling And Learning, John H. Bishop
John H Bishop
[Excerpt] Concern about slackening productivity growth and deteriorating competitiveness has resulted in a new public focus on the quality and rigor of the elementary and secondary education received by the nation's front line workers. The National Assessment of Educational Progress, for example, reports that 93 percent of 17 year olds do not have "the capacity to apply mathematical operations in a variety of problem settings." (1988 p. 42) Higher order thinking and problem solving skills are believed to be in particularly short supply so much attention has been given to mathematics and science education because it is thought that these …
The Federal Role In Education Reform, John H. Bishop
The Federal Role In Education Reform, John H. Bishop
John H Bishop
[Excerpt] The analysis of the causes of the American apathy regarding teaching and learning has important implications for the curriculum. Many of the weaknesses of math and science curricula--the constant review and repetition of old material, the slow pace and minimal expectations--are adaptations to the low level of effort most students are willing to devote to these subjects. When considering proposed revisions of the curriculum, one must remember that motivating students to take tough courses and to study hard must be a central concern.
Vocational And Academic Education In High School: Complements Or Substitutes, Suk Kang, John H. Bishop
Vocational And Academic Education In High School: Complements Or Substitutes, Suk Kang, John H. Bishop
John H Bishop
[Excerpt] A number of blue ribbon-panels have called for increases in the number academic courses required for graduation from high school and for lengthening the school day and the school year. Most states have adopted the first of these recommendations but not the second. With the amount of time a student spends in school remaining constant, increases in the number of required academic courses force reductions elsewhere. Which activities should be reduced? Should the reduction be made in study halls, music and fine arts,physical education, and life skills courses or should it come in vocational education? The answer to this …