Reassessing a Decade of Reform: Workforce Development and the Changing Economy
Education reform in the 1980s and 1990s emerged from a preoccupation with productivity and economic performance. In the 1980s, the country’s education system was blamed for slowing productivity growth and weakening international competitiveness. By the end of the 1990s, the economic context has changed dramatically; unemployment rates are at historical lows, stock prices remain high, and impressive developments associated with computers and the Internet seem only to scratch the surface of the potential in that sector. Still, in education, we are implementing a reform agenda that was developed in one economic context and, according to its advocates, was designed to solve a particular set of economic problems. Thus, we want to ask whether an education reform agenda motivated to a large extent by a particular economic context is still appropriate now that that context appears to have changed.
In the first part of this report, we review the arguments advanced during the 1980s and early 1990s concerning the relationship between education and the economy and describe the education reform agenda that followed those arguments. We then review evidence about the economy and related education reforms that were developed during the 1990s. Based on this new evidence and experience, we then reassess the current education reform agenda, suggesting future policy and research directions.
Workforce Development Reform Agenda of the 1980s
The national preoccupation with the weakening international
competitive position of the American economy led to extensive
discussion of workforce development. The emerging literature was
united by a sense of urgency and crisis. A number of reports,
including A Nation at Risk and America’s Choice: High Skills or
Low Wages!, claimed that profound weaknesses in the education
system were undermining U.S. productivity and competitiveness.
The emerging consensus was that in order to be more competitive,
U.S. workers needed more education and more advanced and
different skills. In addition to international comparisons,
dramatic changes in the relative earnings of high school and
college graduates, growth in occupations requiring higher levels
of education, and the changing nature of work organization
suggested that skill requirements were changing.
According to the typical arguments of the era, other countries
seemed to do a much better job of preparing their workforces.
Based on a favorable impression of European and Asian education
systems and an understanding of the changing nature of work, a
national workforce development reform agenda emerged. It included
the following seven points:
- Skill requirements of work were rising, suggesting that workers at all levels of the employment hierarchy needed stronger academic skills.
- The education system needed to do a better job of teaching a set of skills, such as problem solving and teamwork, that were neither traditional academic nor vocational skills. The Secretary’s Commission on Achieving Necessary Skills (SCANS) developed a list of such skills in 1991.
- Education systems needed to shift from a focus on regulating the educational process to measuring and demanding standards for educational outcomes.
- Education could be improved through the use of innovative pedagogies such as integrated academic and vocational instruction and work-based learning.
- Employers needed to be much more involved with the education system through stronger advisory roles and the provision of work-based learning opportunities.
- Students needed to have better information on the requirements for particular occupations, and, indeed, pathways to occupations needed to be made more systematic through improvements in the use of skill standards.
- The transition from high school to postsecondary education needed to be strengthened, especially for students who had traditionally not continued their education after high school.
These principles were operationalized in a series of federal
laws, which included the 1990 and 1998 reauthorizations of the
Perkins Act, the School-to-Work Opportunities Act (STWOA), the
Goals 2000: Educate America Act, and the Workforce Investment
Act. The STWOA was probably the most comprehensive attempt to
implement this broad workforce development strategy.
Reassessing the Workforce Development Reform Agenda
While policymakers and educators were trying to restore
prosperity by reforming the education system, the U.S. economic
system entered a period of unprecedented growth and low
unemployment; however, improvements in the education system are
unlikely to account for this apparent turnaround. These reforms
remain at the margins of the U.S. education system, and there
have been very moderate, if any, improvements in student
performance as measured by test scores. Thus, education reform
cannot claim credit for positive U.S. economic performance in the
1990s.
Yet, calls for education reform were not based only on the
comparative performance of the U.S. economy. The 1980s conception
of workplace skill needs that formed the basis of the current
workforce development reform agenda has been confirmed by
research during the 1990s. College graduates still receive a
substantial premium in the labor market; jobs are shifting
steadily towards occupations with more highly educated
incumbents; and there is some evidence that academic and SCANS
skills are increasingly important. This suggests that basing
policy on those developments is probably still appropriate,
despite the changes in the strength of the U.S. economy relative
to its competitors.
Much of the workforce development reform agenda that was
developed in the 1980s and early 1990s remains intact. The
changed economic environment and international comparisons have
not significantly affected the part of the reform agenda which
focuses on the importance of academic and SCANS skills and
educational outcomes and accountability. The changing
international comparisons, however, have had a negative influence
on those aspects of the agenda that were most closely tied to
employers and the workplace-employer participation, work-based
learning, and systems of specifically focused skill standards. As
the comparative arguments lose force, we will probably see
continued strengthening of the high school and college focus but
with an additional emphasis on testing academic skills. SCANS
skills could play a role if educators could figure out how to
measure and assess them. The effect of all this is that
traditional high school vocational education is fading and will
continue to do so.
What is perhaps most surprising is how little we know about the
relationship between education and economic performance after
twenty years of education reform explicitly designed to improve
that performance. Although evidence suggests that more education
improves national economic growth and productivity and increases
individual earnings, little is known about exactly which skills
are most important and how they should be taught. International
comparisons, which are useful for generating ideas about
alternative policies and strategies, are often misleading,
especially when only a handful of countries are being compared.
Many factors other than education influence macroeconomic
performance, and in any case, any educational policy could only
be expected to have an effect after many years. We need to focus
at a more microeconomic level, at specific workplaces and
classrooms, and at the determinants of individual career
progression if we want a more concrete and specific understanding
of the education and skill needs of the economy.
Bailey, T., & Gribovskaya, A. (1999, December). Reassessing a decade of reform: Workforce development and the changing economy. Berkeley, CA: National Center for Research in Vocational Education.