Wednesday, December 8, 2010

This is Not the Way to Improve Income Inequality -- Or, Why Offshoring to Asia Makes Sense

Yesterday, I noted that educational achievement is a big factor in unemployment. Interestingly enough, on the same day, the NY Times noted that US students are performing poorly compared to their counterparts in other countries:

With China’s debut in international standardized testing, students in Shanghai have surprised experts by outscoring their counterparts in dozens of other countries, in reading as well as in math and science, according to the results of a respected exam.

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“I know skeptics will want to argue with the results, but we consider them to be accurate and reliable, and we have to see them as a challenge to get better,” he added. “The United States came in 23rd or 24th in most subjects. We can quibble, or we can face the brutal truth that we’re being out-educated.”

In math, the Shanghai students performed in a class by themselves, outperforming second-place Singapore, which has been seen as an educational superstar in recent years. The average math scores of American students put them below 30 other countries.

PISA scores are on a scale, with 500 as the average. Two-thirds of students in participating countries score between 400 and 600. On the math test last year, students in Shanghai scored 600, in Singapore 562, in Germany 513, and in the United States 487.

In reading, Shanghai students scored 556, ahead of second-place Korea with 539. The United States scored 500 and came in 17th, putting it on par with students in the Netherlands, Belgium, Norway, Germany, France, the United Kingdom and several other countries.

In science, Shanghai students scored 575. In second place was Finland, where the average score was 554. The United States scored 502 — in 23rd place — with a performance indistinguishable from Poland, Ireland, Norway, France and several other countries.

US students are performing poorly in science and math -- the two subject areas that will lead to better jobs.

If you were a company that was looking to build a factory/manufacturing facility, where would you locate it? Frankly, offshoring to Asia makes sense because of the far better educated work force.