Media and politicians claim Australian education is in decline whenever results of international assessments are released. The Australian Council for Educational Research reported that the average Australian reading scores dropped 13 points to 515 between 2000 and 2009, compared with the Organisation for Economic Co-operation and Development average of 496. Australia's ranking in the Program for International Student Assessment has dropped in the past three years. How much should it worry about its standing?

The experience of the US offers some answers. If any of the ''evidence'' of its education quality meant anything, it would not be the No.1 nation economically. American politicians and education reformers maintain American education is in decline whenever results of international assessments are released. In fact, American education is not in decline - it has been horrible for a long time. So why has the nation not been ruined by its horrible education system?

"Test scores are not worth as much as many believe and can damage what really matters for a nation and a person." Credit:Darren Pateman

International tests are not worth much in predicting a nation's economic prosperity, productivity, quality of life, democracy, and creativity. Keith Baker, a former researcher at the US National Centre for Education Statistics, uncovered this in an analysis of the relationship between the outcomes of the first international mathematics study, held in the 1960s, and the conditions of the participating countries 40 years later.

However, personality traits and other non-cognitive skills have been shown to have strong relations to earnings, productivity, and employability. Self-esteem or confidence in childhood has a great impact on earnings in adulthood. The top five most valued skills by employers are communication skills, motivation/initiative, teamwork skills, leadership skills, and academic achievement; test scores come last.