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The Economic Impact of the
Achievement Gap in Saudi Arabia

     Alexander W. Wiseman, PhD
The Economic Impact of Education

         Education develops human capital



                     Human capital = attainment + performance




                                                                                                                                                              Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
                                Attainment + performance = productivity



                                            Higher productivity = economic advantage

___
Card, D. (2000). Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems. Cambridge, MA: National Bureau of Economic Research.
Fasano, U., &Goyal, R. (2004). Emerging Strains in GCC Labor Markets. Washington, DC: International Monetary Fund.
Ramirez, F. O., Luo, X., Schofer, E., & Meyer, J. W. (2006). Student Achievement and National Economic Growth. American Journal of Education, 113(1), 1-30.
Cognitive Skills Matter

                                                      Improved                                                  New
                                                      Cognitive                                              Knowledge
                                                        Skills                                              Technologies




                                                                                                                                                                                Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
                                                      Increased                                                Innovative
                                                      Economic                                                  Economic
                                                       Growth                                                   Capacity


___
Hanushek, E. A., &Woessmann, L. (2010). The Economics of International Differences in Educational Achievement. Cambridge, MA: National Bureau of Economic Research.
Jamison, E. A., Jamison, D. T., &Hanushek, E. A. (2007). The Effects of Education Quality on Income Growth and Mortality Decline. Economics of Education Review, 26, 772-789.
Economic Implications
  If national economic health is measured by
student achievement (i.e., cognitive skill), then
     Saudi Arabia is economically unhealthy.




                                                    Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
EXHIBIT 1: Saudi Arabia Behind in Mathematics Education
TIMSS rankings show Saudi Arabia trailing other countries worldwide and in
Gulf Cooperation Council in mathematics achievement




                                                                             Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
EXHIBIT 2: Saudi Arabia Behind in Science Education
TIMSS rankings show Saudi Arabia trailing other countries worldwide and in
Gulf Cooperation Council in science achievement




                                                                             Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
Overwhelmingly Underperforming
 Given the relatively low levels of economically
disadvantaged students in Saudi Arabia, Saudi
students are overwhelmingly underperforming.




                                                   Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
EXHIBIT 3: QUALITY AND DISADVANTAGE IN MATHEMATICS EDUCATION
31 countries have higher average math scores in spite of having more
economically-disadvantaged students than Saudi Arabia




                                                                       Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
EXHIBIT 4: QUALITY AND DISADVANTAGE IN SCIENCE EDUCATION
31 countries have higher average science scores in spite of having more
economically-disadvantaged students than Saudi Arabia




                                                                          Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
Erasing SES Advantages
Otherwise economically advantaged students
 perform on par with the most economically
 disadvantaged because resource shortages
        affect instruction at school.




                                             Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
EXHIBIT 5: QUALITY AND EQUITY OF MATHEMATICS INSTRUCTION
36 countries have higher average math scores and better resources for math
instruction at school than Saudi Arabia




                                                                             Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
EXHIBIT 6: QUALITY AND EQUITY OF SCIENCE INSTRUCTION
33 countries have higher average science scores and better resources for
science instruction at school than Saudi Arabia




                                                                           Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
Cost-Effectiveness Sacrificed
   A Saudi education is among the least cost-
effective in the world. Most countries with high
average math and science scores spend less per
             pupil than Saudi Arabia.




                                                   Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
EXHIBIT 7: COST EFFECTIVENESS OF MATHEMATICS EDUCATION
37 countries have higher average mathematics scores and lower per pupil
expenditures than Saudi Arabia




                                                                          Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
EXHIBIT 8: COST EFFECTIVENESS OF SCIENCE EDUCATION
38 countries have higher average science scores and lower per pupil
expenditures than Saudi Arabia




                                                                      Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
Maximize Impact
 Saudi Arabia needs to maximize educational
impacts on cognitive skill development without
      increasing the costs of education.




                                                 Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
EXHIBIT 9: PER PUPIL SPENDING COST EFFECTIVENESS (MATHEMATICS)
Saudi Arabia spends an average amount compared to other countries
worldwide per point on the TIMSS mathematics test ($9.01/point)




                                                                    Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
EXHIBIT 10: PER PUPIL SPENDING COST EFFECTIVENESS (SCIENCE)
Saudi Arabia spends an average amount compared to other countries
worldwide per point on the TIMSS science test ($8.35/point)




                                                                    Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
Potential for Economic Growth
Saudi students score more frequently and with
more variation at the lowest levels in both math
and science, but Saudi Gross Domestic Product
  (GDP, per capita) could double if students




                                                                                      Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
       performed at the highest levels.

 The question is whether or not this is the appropriate causal direction of effect.
  Potential change in GDP by student performance is estimated in the following
                                    analyses.
EXHIBIT 11: DISTRIBUTION OF MATHEMATICS ACHIEVEMENT
Saudi Arabian students scored more frequently and with more variation at the
lowest international benchmarks in mathematics




                                                                               Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
EXHIBIT 12: DISTRIBUTION OF SCIENCE ACHIEVEMENT
Saudi Arabian students scored more frequently and with more variation at the
lowest international benchmarks in science




                                                                               Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
EXHIBIT 13: GDP POTENTIAL BY MATHEMATICS BENCHMARK AVERAGE
The Saudi Arabian GDP could potentially double if all students performed at
the highest levels demonstrated for mathematics achievement




                                                                              Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
EXHIBIT 14: GDP POTENTIAL BY SCIENCE BENCHMARK AVERAGE
The Saudi Arabian GDP could potentially double if all students performed at
the highest levels demonstrated for science achievement




                                                                              Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
Sustainability is Key
  Even if Saudi students perform at the highest
level, it will take more than a one-time increase
  in cognitive skills to match GCC average GDP.




                                                    Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
EXHIBIT 15: GDP DIFFERENCE BY MATHEMATICS BENCHMARK AVERAGE
Increased mathematics performance could potentially raise Saudi Arabian
GDP, but will still lag relative to the Gulf Cooperation Council average.




                                                                            Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
EXHIBIT 16: GDP DIFFERENCE BY SCIENCE BENCHMARK AVERAGE
Increased science performance could potentially raise Saudi Arabian GDP, but
will still lag relative to the Gulf Cooperation Council average.




                                                                               Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
Economic Growth is Cumulative
   GDP growth is cumulative. The higher Saudi
cognitive skill levels become, the higher GDP and
  the lower average skills required to meet and
             exceed the GCC average.




                                                    Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
Weaknesses

Saudi students among the lowest performing in the world.




                                                           Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
  Saudi students perform at levels indicative of extreme
                      disadvantage.



          Saudi education is not cost-effective.
Strengths

     Saudi students – on average – have SES on their side.




                                                                  Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
 Saudi schools are funded at levels comparable to the highest
               achieving countries in the world.



  Small increases can quickly add up because the cumulative
effect of cognitive skill improvement on economic productivity.
Final Thoughts
Education, achievement and economic
productivity are linked in a knowledge
economy.




                                                 Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
    Evidence suggests that Saudi Arabia’s
    economy is in danger and will decline
    unless cognitive skills improve.


         Saudi students and educators have the
         potential to reverse these trends.
Alexander W. Wiseman, PhD
   aww207@lehigh.edu

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The Economic Impact of the Achievement Gap in Saudi Arabia

  • 1. The Economic Impact of the Achievement Gap in Saudi Arabia Alexander W. Wiseman, PhD
  • 2.
  • 3. The Economic Impact of Education Education develops human capital Human capital = attainment + performance Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu Attainment + performance = productivity Higher productivity = economic advantage ___ Card, D. (2000). Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems. Cambridge, MA: National Bureau of Economic Research. Fasano, U., &Goyal, R. (2004). Emerging Strains in GCC Labor Markets. Washington, DC: International Monetary Fund. Ramirez, F. O., Luo, X., Schofer, E., & Meyer, J. W. (2006). Student Achievement and National Economic Growth. American Journal of Education, 113(1), 1-30.
  • 4. Cognitive Skills Matter Improved New Cognitive Knowledge Skills Technologies Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu Increased Innovative Economic Economic Growth Capacity ___ Hanushek, E. A., &Woessmann, L. (2010). The Economics of International Differences in Educational Achievement. Cambridge, MA: National Bureau of Economic Research. Jamison, E. A., Jamison, D. T., &Hanushek, E. A. (2007). The Effects of Education Quality on Income Growth and Mortality Decline. Economics of Education Review, 26, 772-789.
  • 5. Economic Implications If national economic health is measured by student achievement (i.e., cognitive skill), then Saudi Arabia is economically unhealthy. Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
  • 6. EXHIBIT 1: Saudi Arabia Behind in Mathematics Education TIMSS rankings show Saudi Arabia trailing other countries worldwide and in Gulf Cooperation Council in mathematics achievement Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
  • 7. EXHIBIT 2: Saudi Arabia Behind in Science Education TIMSS rankings show Saudi Arabia trailing other countries worldwide and in Gulf Cooperation Council in science achievement Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
  • 8. Overwhelmingly Underperforming Given the relatively low levels of economically disadvantaged students in Saudi Arabia, Saudi students are overwhelmingly underperforming. Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
  • 9. EXHIBIT 3: QUALITY AND DISADVANTAGE IN MATHEMATICS EDUCATION 31 countries have higher average math scores in spite of having more economically-disadvantaged students than Saudi Arabia Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
  • 10. EXHIBIT 4: QUALITY AND DISADVANTAGE IN SCIENCE EDUCATION 31 countries have higher average science scores in spite of having more economically-disadvantaged students than Saudi Arabia Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
  • 11. Erasing SES Advantages Otherwise economically advantaged students perform on par with the most economically disadvantaged because resource shortages affect instruction at school. Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
  • 12. EXHIBIT 5: QUALITY AND EQUITY OF MATHEMATICS INSTRUCTION 36 countries have higher average math scores and better resources for math instruction at school than Saudi Arabia Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
  • 13. EXHIBIT 6: QUALITY AND EQUITY OF SCIENCE INSTRUCTION 33 countries have higher average science scores and better resources for science instruction at school than Saudi Arabia Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
  • 14. Cost-Effectiveness Sacrificed A Saudi education is among the least cost- effective in the world. Most countries with high average math and science scores spend less per pupil than Saudi Arabia. Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
  • 15. EXHIBIT 7: COST EFFECTIVENESS OF MATHEMATICS EDUCATION 37 countries have higher average mathematics scores and lower per pupil expenditures than Saudi Arabia Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
  • 16. EXHIBIT 8: COST EFFECTIVENESS OF SCIENCE EDUCATION 38 countries have higher average science scores and lower per pupil expenditures than Saudi Arabia Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
  • 17. Maximize Impact Saudi Arabia needs to maximize educational impacts on cognitive skill development without increasing the costs of education. Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
  • 18. EXHIBIT 9: PER PUPIL SPENDING COST EFFECTIVENESS (MATHEMATICS) Saudi Arabia spends an average amount compared to other countries worldwide per point on the TIMSS mathematics test ($9.01/point) Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
  • 19. EXHIBIT 10: PER PUPIL SPENDING COST EFFECTIVENESS (SCIENCE) Saudi Arabia spends an average amount compared to other countries worldwide per point on the TIMSS science test ($8.35/point) Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
  • 20. Potential for Economic Growth Saudi students score more frequently and with more variation at the lowest levels in both math and science, but Saudi Gross Domestic Product (GDP, per capita) could double if students Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu performed at the highest levels. The question is whether or not this is the appropriate causal direction of effect. Potential change in GDP by student performance is estimated in the following analyses.
  • 21. EXHIBIT 11: DISTRIBUTION OF MATHEMATICS ACHIEVEMENT Saudi Arabian students scored more frequently and with more variation at the lowest international benchmarks in mathematics Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
  • 22. EXHIBIT 12: DISTRIBUTION OF SCIENCE ACHIEVEMENT Saudi Arabian students scored more frequently and with more variation at the lowest international benchmarks in science Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
  • 23. EXHIBIT 13: GDP POTENTIAL BY MATHEMATICS BENCHMARK AVERAGE The Saudi Arabian GDP could potentially double if all students performed at the highest levels demonstrated for mathematics achievement Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
  • 24. EXHIBIT 14: GDP POTENTIAL BY SCIENCE BENCHMARK AVERAGE The Saudi Arabian GDP could potentially double if all students performed at the highest levels demonstrated for science achievement Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
  • 25. Sustainability is Key Even if Saudi students perform at the highest level, it will take more than a one-time increase in cognitive skills to match GCC average GDP. Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
  • 26. EXHIBIT 15: GDP DIFFERENCE BY MATHEMATICS BENCHMARK AVERAGE Increased mathematics performance could potentially raise Saudi Arabian GDP, but will still lag relative to the Gulf Cooperation Council average. Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
  • 27. EXHIBIT 16: GDP DIFFERENCE BY SCIENCE BENCHMARK AVERAGE Increased science performance could potentially raise Saudi Arabian GDP, but will still lag relative to the Gulf Cooperation Council average. Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
  • 28. Economic Growth is Cumulative GDP growth is cumulative. The higher Saudi cognitive skill levels become, the higher GDP and the lower average skills required to meet and exceed the GCC average. Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu
  • 29. Weaknesses Saudi students among the lowest performing in the world. Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu Saudi students perform at levels indicative of extreme disadvantage. Saudi education is not cost-effective.
  • 30. Strengths Saudi students – on average – have SES on their side. Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu Saudi schools are funded at levels comparable to the highest achieving countries in the world. Small increases can quickly add up because the cumulative effect of cognitive skill improvement on economic productivity.
  • 31. Final Thoughts Education, achievement and economic productivity are linked in a knowledge economy. Alexander W. Wiseman, Lehigh University, aww207@lehigh.edu Evidence suggests that Saudi Arabia’s economy is in danger and will decline unless cognitive skills improve. Saudi students and educators have the potential to reverse these trends.
  • 32. Alexander W. Wiseman, PhD aww207@lehigh.edu