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Weekly links July 28: overpaid teachers? Should we use p=0.005? beyond mean impacts, facilitating investment in Ethiopia, and more…

David McKenzie's picture
  • Well-known blog skeptic Jishnu Das continues to blog at Future Development, arguing that higher wages will not lead to better quality or more effective teachers in many developing countries – summarizing evidence from several countries that i) doubling teacher wages had no impact on performance; ii) temporary teachers paid less than permanent teachers do just as well; and iii) observed teacher characteristics explain little of the differences in teacher effectiveness.
  • Are we now all doomed from ever finding significance? In a paper in Nature Human Behavior, a multi-discipline list of 72 authors (including economists Colin Camerer, Ernst Fehr, Guido Imbens, David Laibson, John List and Jon Zinman) argue for redefining statistical significance for the discovery of new effects from 0.05 to using a cutoff of 0.005. They suggest results with p-values between 0.005 and 0.05 now be described as “suggestive”. They claim that for a wide range of statistical tests, this would require an increase in sample size of around 70%, but would of course reduce the incidence of false positives. Playing around with power calculations, it seems that studies that are powered at 80% for an alpha of 0.05 have about 50% power for an alpha of 0.005. It implies using a 2.81 t-stat cutoff instead of 1.96. Then of course if you want to further adjust for multiple hypothesis testing…