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BOOK REVIEWS: The Reagan Revolution in Sweden
By Nathan Glazer
The Market Comes to Education in Sweden: An Evaluation of Sweden’s Surprising School Reforms by ANDERS BJORKLUND, MELISSA A. CLARK, PER-ANDERS EDIN, PETER FREDRIKSSON, AND ALAN B. KRUEGER
The Market Comes to Education in Sweden: An Evaluation of Sweden’s Surprising School Reforms.
Anders Bjorklund, Melissa A. Clark, Per-Anders Edin, Peter Fredriksson, and Alan B. Krueger.
Russell Sage Foundation, 2005, $27.50; 157 pages.
As reviewed by Nathan Glazer
It will undoubtedly be a surprise to many, as
it was to me, that Sweden, a country with one of the most developed
systems of government-provided social services, was swept up in the
Reagan revolution. As the first words of this book remind us,
“Sweden has long been known for its pursuit of
equality—both equality of opportunity and equality of
outcome.” But as happened to Americans in the 1980s, the
Swedes underwent a transformation in their thinking about the role
of the government in society and that of the market in providing
social services.
And in 1991 the Social Democratic party was
replaced by a center-right coalition, which, according to The Market Comes to Education in Sweden, began to introduce “sweeping,
market-oriented reforms in public education.” Those reforms
included measures that allowed private schools to compete with
public schools, devolved authority for the public schools from the
central government to local municipalities, and increased the
variability in resources available to students in different
municipalities. In other words, schooling in Sweden changed from
being almost entirely public, uniform, and centralized to something
much more like schooling in the United States. And these reforms persisted even after the Social Democrats regained
power in 1994. Apparently the changes were popular.
The Market Goes to School
The reforms had begun under the Social
Democrats in 1989, when controversial legislation “made local
municipalities the main employers” of teachers. Passed after
“a major political battle with the teachers unions,”
this reform allowed greater variability in teachers’ pay.
Detailed central regulations were also reduced. Localities had
greater authority in expenditures and in programs, and independent
schools expanded. Both changes increased the role of a
“market” in schooling.
If families choose the community in which they
will live in part on the basis of the quality of local schools, or
if they can choose between competitive independent schools and
public schools, a market is at work.
The meaning of such changes will differ from
one country to another. No country shows the degree of residential
mobility that the United States does, for example; but there
is no hint in the book that people in Sweden actually move and
select communities on the basis of the presumed quality of schools,
as we know they do to some degree in the United States. It is also
not clear just what kind of independence the independent schools
have, what they are like, and what motivates people to choose them.
They are, we are told, “publicly funded but privately
run,” something like our charter schools. Thus choosing them
is not inhibited (apparently) by additional costs, as is true for
private schools in the United States.
But what reasons lead parents to choose private schools? We are told that the
percentage of students in independent schools rose from 1 percent in
1991 to 6 percent in 2002; apparently there was little call—or
market—for private schools before the reforms. It is not clear
what these independent schools offer. In the United States (where some
13 percent of schoolchildren attend private or charter schools),
independent schools are predominantly religious. But with no large
Catholic, conservative Christian, or Jewish population in Sweden and no
evidence presented in this book of discontent with public schools, one
wonders who the main clients of private schools in Sweden are. The
authors’ account of the social and education situation in Sweden,
and what actually happened and why, is too brief to give a clear
picture.
An Inconclusive Conclusion
The authors, all labor economists, are more
interested in the demonstrated effects of the changes they sketch
than in a fuller examination and characterization of the reforms.
The major substantive chapters of the book place Swedish
expenditure and achievement in comparative perspective (in both,
Sweden rates high); show that the decline in education inputs
during the 1990s worsened the teacher-student ratio and teacher
quality; review the international research on the effects of school
choice; and test for the effects of school choice in Sweden on
achievement. The authors find the effects are small but not
negative. They report that children with highly educated parents
are more likely to attend independent schools, but so, confusingly,
are immigrants.
“We are all empirical labor economists,” the authors write (they are the
common authors of the book), and “we are inclined to focus on
measurable aspects of what schools produce.” This is a highly
technical work. And it demonstrates the well-known generalization in
the evaluation of social programs: the more meticulous and professional
the research, the fewer clear and sharp effects are to be found. Though
at least one of the authors (Krueger) is a known skeptic of vouchers,
they do not tip their hands here. This is not an ideological work. The
overall conclusion is that neither the negative effects one could have
feared, nor the positive effects one could have hoped for, were large.
The negative effects are those one would
expect in a market system: an increase in inequality, unequal
educational achievement, and unequal wages in adult life. But in
Sweden both the profile of educational achievement and the profile
of earnings is, by American standards, remarkably compressed and
remains so. Neither the heights nor the depths are to be found. On
the whole, Sweden, like the Scandinavian and smaller countries of
northern Europe generally, does very well in international tests of
educational achievement—so well that one wonders why any
great change was considered necessary at all.
As the authors explain, one reason for the
change was that Sweden’s expenditure on education was
relatively high; as a percentage of national income, as high as
that in the United States. And with an economic crisis in the 1990s
the question was, Could we manage as well by spending less? Indeed,
Swedish expenditures did go down, teachers’ salaries showed
relative decline, and class size increased. But there is an irony
in judging the “efficiency” of Swedish education in the
way economists measure it—by differential economic return
related to amount of and expenditure on education—since the
efficiency of education in a society in which the wage level is
compressed by powerful union and other institutional pressures will
inevitably appear low.
The Land of the Free Lunch No Longer
Among the book’s more
“robust” conclusions, to use the economists’
term, is that the high Swedish expenditure on adult education
(which is very well developed in Sweden, as a resource for
unemployed workers and as a way of upgrading or changing
one’s credentials) is not warranted by its returns: But how
could it be, when, we learn, “individuals received student
pay [all students are paid in Sweden—part of the commitment
to equality] at the level of unemployment benefits, which in Sweden
replace up to 80 percent of forgone earnings.” Wonderful
Sweden! At that cost, one would have to get very good returns
indeed to demonstrate that adult education pays.
One of the most interesting and useful aspects
of the book to the American reader is the review of research on the
effects of competition and decentralization around the world, from
New Zealand to Chile. One learns that the no-holds-barred conflicts
that have erupted over these issues among researchers in the United
States are to be found even in placid Sweden.
One finding does seem to stand up across
societies: more resources will help immigrants and those who do
worse in school. “The academic achievement of students from
disadvantaged families is more susceptible to variations in
resources than that of students from advantaged families.”
The disadvantaged in Sweden are of course much less disadvantaged
than those in the United States. Foreign-born students attend
private schools in somewhat higher proportions than native born.
But what this means in the Swedish context is not clear, as is true
for this reader, of many of the findings of this book.
The general story is clear. “Our
overriding conclusion is that the effects of the education reforms
have been exaggerated by both sides,” write the authors.
“The reforms did increase the efficiency of the school
system,” as measured by results as related to costs. But the
increase was modest, and “the disparities in achievement
resulting from the reforms were also modest.… But by and large the
newly decentralized, choice-driven system has had small positive
effects on the academic performance of most Swedish
students.”
The authors do not suggest going back to the
earlier, more uniform, less competitive system. But they are
studying the effect of a rather constrained and hardly vigorous
market, as far as one can tell. Unleashed, the market might well
have greater effects, on both efficiency and equality.
Nathan Glazer is professor of education and
sociology emeritus at Harvard University.
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