Map of Pernitz on James HECKMAN estimates that a 10 percent increase in educational expenditure raises earnings by about 1 or 2 percent. It is up to society to determine whether this payoff justifies increased expenditure. Heckman also finds that educational investments made in early childhood improve later performance by children from low-income families, suggesting that the larger issue may not be how much we spend on education, but how we allocate our education dollars. Support for public expenditure on education is weakened by such well-publicized facts as falling SAT scores since the 1960s, despite increased expenditure per pupil from $3, 796 (in 1998 dollars) in 1970 to $6, 576 (in 1998 dollars) in 1990, according to the U.S.
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Census Bureau. There is a growing perception that public schools are less effective than private schools, that spending more on public schools will have little or no payoff, and that a drastic change in how we provide public education is needed. Map of Pernitz 2016.
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