Educational testing service

What Is Educational Testing Service?

The Educational Testing Service (ETS) is the world's largest private non-profit organization dedicated to educational assessment and measurement. Founded in 1947, ETS develops, administers, and scores a wide array of standardized tests used globally for academic admissions, professional licensing, and English language proficiency. Its mission is to advance quality and equity in education worldwide through rigorous research and the creation of valid assessments. ETS serves individuals, educational institutions, government agencies, and businesses across more than 180 countries. ETS plays a significant role in shaping educational pathways and workforce development by providing reliable metrics of skill and knowledge.

History and Origin

The origins of standardized testing in the U.S. can be traced back to the 19th century, with early forms of written examinations being adopted by colleges like Harvard by 1851 to assess student achievement and ensure a uniform set of skills among entrants.³² The formalization of these efforts led to the establishment of the College Entrance Examination Board (now College Board) in 1900, which introduced national entrance exams.³⁰, ³¹

The Educational Testing Service itself was founded in 1947. It was established as a U.S.-registered 501(c)(3) non-profit organization by three prominent educational bodies: the American Council on Education, The Carnegie Foundation for the Advancement of Teaching, and The College Entrance Examination Board. ETS was created to centralize and advance the scientific principles of educational measurement, taking over the testing activities of its founders who were not structured to run operational assessment programs. This move aimed to foster research to improve educational assessment and evaluation.

Key Takeaways

• The Educational Testing Service (ETS) is the largest private, non-profit educational testing and assessment organization globally.
• ETS develops and administers widely recognized standardized tests such as the TOEFL, TOEIC, GRE, and Praxis Series.
• It operates as a 501(c)(3) non-profit, with reported revenues exceeding $1 billion in 2023.²⁸, ²⁹
• ETS's work impacts educational admissions, professional certification, and English language proficiency worldwide.
• The organization faces criticisms regarding its market dominance, financial practices, and the broader debate surrounding the fairness and impact of standardized testing.

Interpreting the Educational Testing Service

The role of the Educational Testing Service is primarily to provide standardized measures that allow for consistent evaluation of individuals across diverse backgrounds and contexts. When interpreting the function of ETS, it's important to understand that its tests aim to offer objective data points for academic and professional gatekeeping. For instance, universities use Graduate Record Examinations (GRE) scores to evaluate applicants for graduate programs, while the Test of English as a Foreign Language (TOEFL) assesses the English proficiency of non-native speakers, often a requirement for international students seeking admission to English-speaking educational institutions.

The scores generated by ETS exams are often considered alongside other qualitative and quantitative factors, such as academic transcripts, letters of recommendation, and personal essays. The interpretation of these scores is critical for decisions related to admissions, placement, and professional licensure. While the tests provide a common benchmark, their utility must be considered within the broader context of a candidate's overall profile and the specific requirements of the program or profession. The data from these tests can also inform broader public policy discussions regarding educational outcomes and the skills of the future workforce.

Practical Applications

The Educational Testing Service's influence extends across several key areas:

• Academic Admissions: ETS tests are fundamental to the admissions processes for higher education. The Graduate Record Examinations (GRE) are widely used for graduate school admissions, providing universities with a standardized measure of verbal reasoning, quantitative reasoning, and analytical writing skills. The TOEFL test is crucial for international students, demonstrating their English language proficiency for study in English-speaking academic environments.
• Professional Certification and Licensure: Beyond academia, ETS develops and administers tests for professional certification across various industries. For example, the Praxis Series assessments are used for licensing teachers in many U.S. states, ensuring they meet professional standards before entering the classroom. Other ETS-developed tests support certification for fields such as architecture, nursing, and financial planning.²⁷
• Workforce Development: ETS also engages in developing talent and assessment tools for workforce acquisition, upskilling, and reskilling initiatives. This includes partnerships aimed at advancing the development and measurement of skills vital for economic participation.²⁶
• Educational Research: As a core part of its mission, ETS conducts extensive research in psychometrics, educational measurement, and learning sciences. This research aims to improve the validity and fairness of assessments and contributes to the broader understanding of learning and cognitive development.
• Government and Policy: ETS provides services to government agencies, including the U.S. Department of Education, for assessment development and psychometric analysis. Standardized testing, generally, has been mandated by federal laws such as the Every Student Succeeds Act (ESSA) to assess student performance and development, with implications for public schools' funding and accountability.²², ²³, ²⁴, ²⁵ Research suggests a link between national test scores and long-term economic growth.²⁰, ²¹

Limitations and Criticisms

Despite its prominent role, the Educational Testing Service, and standardized testing generally, face significant limitations and criticisms. One major critique centers on the perceived monopolistic nature of ETS within the educational testing industry, with some characterizing it as a "highly competitive business operation that is as much multinational monopoly as nonprofit institution" due to its substantial revenues. Critics also point to concerns about high executive compensation and the sale of test preparation materials, which some argue contradict its non-profit status.¹⁹

Broader criticisms of standardized testing, which apply to ETS's offerings, include:

• Economic Inequality and Bias: Standardized tests are often criticized for disadvantaging students from lower socioeconomic backgrounds due to factors like limited access to resources for test preparation, which creates a financial aid disparity for additional coaching and materials.¹⁶, ¹⁷, ¹⁸ Test questions may also be biased towards certain cultural or socioeconomic groups.¹⁵
• Narrowed Curriculum and "Teaching to the Test": The emphasis on high-stakes standardized testing can lead schools and teachers to focus heavily on test preparation, potentially narrowing the curriculum and stifling creativity and critical thinking.¹³, ¹⁴
• Stress and Performance: The pressure associated with high-stakes tests, where scores can determine graduation or school funding, can cause undue stress on students and negatively affect their performance.¹²
• Lack of Comprehensive Assessment: Standardized tests may not fully capture a student's true academic performance or a wide range of skills, such as problem-solving abilities or creativity, which are vital for developing valuable human capital.¹⁰, ¹¹ Some economists note a weak correlation between standardized test scores and long-term economic outcomes like earnings, once other factors are controlled.⁹

Educational Testing Service vs. Certification Body

While both the Educational Testing Service and a Certification Body are organizations involved in evaluating and verifying certain standards, their primary functions and scope differ significantly.

The Educational Testing Service (ETS) focuses specifically on educational measurement. It designs, administers, and scores standardized tests aimed at assessing academic achievement, aptitude, or proficiency, typically for purposes of admission to academic programs, educational placement, or teacher licensing. Its mandate revolves around the educational ecosystem, providing metrics that help gauge academic readiness and learning outcomes.

In contrast, a Certification Body is a broader term for an independent, impartial third-party organization that provides professional accreditation services.⁸ A Certification Body audits and demonstrates whether a product, service, process, system, or individual complies with specific industry standards or regulations, such as ISO certifications.⁴, ⁵, ⁶, ⁷ Their role is to verify conformity to established criteria, often in commercial or industrial contexts, ensuring quality, safety, or environmental compliance, which may indirectly affect a company's return on investment by enhancing consumer trust and market access. While ETS might offer tests leading to an educational certification, a general Certification Body does not typically operate within the realm of academic admissions or broad-based educational aptitude testing, but rather confirms adherence to a defined set of operational or product standards.

FAQs

What types of tests does Educational Testing Service (ETS) administer?

ETS administers a variety of widely recognized standardized tests, including the TOEFL (Test of English as a Foreign Language), TOEIC (Test of English for International Communication), GRE (Graduate Record Examinations), and the Praxis Series assessments for educators.

Is Educational Testing Service a for-profit company?

No, the Educational Testing Service is registered as a 501(c)(3) non-profit organization in the U.S.³ While it generates substantial revenue streams from its testing services, its legal status means it is exempt from federal corporate income tax on many operations and reinvests earnings into its mission.

How does standardized testing, facilitated by organizations like ETS, impact the economy?

Research suggests a clear link between a nation's average scores on international math and science tests and its long-run economic growth rates.¹, ² Higher-skilled workforces, often measured in part by these tests, are associated with greater productivity and economic prosperity. Thus, the assessment services provided by organizations like ETS can offer insights into the future potential of a country's labor force.