Nov 05, 2007 -- /prbuzz/ --THE HIDDEN COST OF THE STRIKE: 3.5 BILLION SHEKELS
New research by Israeli research institute shows that secondary school strike has already cost billions and scores drop 3-5 percent for every two weeks out of school.
'As a parent, I'm petrified!' says report's author
Jerusalem, Israel – The month-long secondary school strike has already cost the Israeli economy over 3.5 billion shekels, according to new research from an Israeli economic research institute. According to the Jerusalem Institute for Market Studies, the school strike will result in lifetime losses in income and declining capabilities in academic subjects such as reading and math for thousands of Israeli students.
“Little effort has been made to determine the true cost of the latest teachers strike. While the lost wages of striking teachers is not insignificant, it is relatively small compared to the hidden lost in future income of the high school students affected by the strike,” said Corinne Sauer, Executive Director of the Jerusalem Institute for Market Studies. “While the Secondary School Teachers Association told the National Labor Court that the strike is not causing irreversible damage to students, the truth is otherwise.”
Two professors at Harvard University, Richard Murane and John Willett, recently showed that just ten days of teacher absences reduced the students' mathematics achievement by 3.3%. Similarly, Dave Marcotte and Steven Hemelet of the University of Maryland, Baltimore County (UMBC) found that lost school days due to bad weather has a negative effect on students' performance. They found that for ten days of school closure, the percent of students passing reading and math test drops by more than five percent. Further, the authors are skeptical on whether lost days in the middle of the academic year can be replaced by additional days in the summer. Considering the fact that Israel has fallen from 17th to 31st place for quality of math and science education according to the World Economic Forum (WEF) global competitiveness rankings, how much will this strike hurt Israel's competitiveness?
“The irreversible damage of missing a few days of school due to snow is nothing compared to the long-term ramifications of these extended strikes. Students have been prevented from learning for over a month already. How much longer can our students stay out of the classroom?” asked Avi Hein, Director of Programs of the Jerusalem Institute for Market Studies. “Strikes have become a regular occurrence in Israel, so the long-term costs are even worse than the billions of dollars and lowered test scores for just this latest strike.”
According to research conducted by the Jerusalem Institute for Market Studies, for each day lost in formal learning, the lifetime earnings of the students diminishes and the hidden costs of the strike keep growing. When students learn, they increase their human capital. This investment translates into higher lifetime earnings. Delaying investment in students' education, whether for a year or even just a few months, lowers future earnings. Widely accepted econometric studies have shown that an interruption in formal education of one year decreases average lifetime earnings by at least four-percent. Assuming, the same rate of decrease, a month long interruption in schooling due to the strike will reduce lifetime earnings of Israeli students by 0.4%. If we assume that on average, high school students of today will work 45 years and earn an average annual income of 88,000 shekels a year, which was Israel's average wage in 2006, the lost earnings due to the strike will amount to more than 15,000 shekels for each student. With 220,000 students already affected by the strike – and threats to expand it -- the cost of the strike to the Israeli society as a whole, is now already reaching three and a half billion shekels.
“Every missed day of school reduces Israeli students' future academic performance and potential lifetime earnings. The long-term costs of reduced school attendance, not only hurts the students themselves, but also the prosperity of the society in which they live,” said Sauer.
One person, Julian Gidron, a 16 year old student from Herzliya's HaYovel High School, has even petitioned Israel's high court to end the strike immediately. Yet, says Hein, the government can not solve a problem that it is responsible for creating. “While Julian's desire to learn must be commended, only through school choice can Israel's teachers earn the salaries that they deserve and Israel's students get the education that will allow them to be global citizens in the twenty-first century. As long as the unions are in control, the costs to Israel will be enormous. Paige, former U.S. Secretary of Education, once remarked that 'teachers unions have become a major barrier to the improvement of our public schools.' In Israel, they are a barrier to our future!”
“Every day students are kept out of school results in test scores lowering and Israel's economy worsening. By keeping our students out of the classroom, the unions are holding the country's future hostage. As an economist, I'm worried. As a parent, however, I'm petrified! The ramifications of this strike will be felt for decades to come,” said Sauer.
About the Jerusalem Institute for Market Studies
The Jerusalem Institute for Market Studies (JIMS) is an independent, non-profit economic policy think tank whose mission is to promote social progress in Israel through economic freedom and individual liberty.
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New research by Israeli research institute shows that secondary school strike has already cost billions and scores drop 3-5 percent for every two weeks out of school.
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