The study seeks to analyse challenges facing Basic Education in South Africa. There is a major emphasis on the education of the South African people to become responsible, participatory and reflective citizens that contribute to an emerging democracy. However, the government of SA is faced with many challenges that hinder the South African people from becoming an educated nation. This is based on the assumption that education plays a major role in improving the economic status of the nation. The education in South Africa is categorized into sectors, primary, secondary and tertiary which are interlinked through a fine thread that determines the success of individuals. It has been established that a number of factors or problems hinder learners from receiving a good standard of education. These include: parents’ lack of participation in their children’s education and the weak functioning of School Governing Bodies (SGBs) especially in the area of finance and general administration of the school, poor infrastructure and shortage or non-delivery of textbooks. Good leadership in schools is also needed to make sure that teachers attend to their classes diligently and learners take the importance of education seriously. Government needs to ensure that teachers are trained accordingly and schools have adequate basic resources. The qualitative research method was used and no interviews and survey were made during this study. This research will discuss these factors that have been identified as causing the drop in the standard of education in South Africa. The research concludes with an attempt to make some recommendations to improve this situation.

This thesis first presents a general procedure for decomposing income inequality measures by income source. The first method draws on the literature of ethical social index numbers to construct a decomposition based on a weighted sum of the inequality indices for the respective component distributions. The second method is based on the Shap- ley value of transferable utility cooperative games. The ethical and technical properties of the decompositions are examined, showing that the interactive technique has some previously known decompositions as special cases. In the third chapter I examine the contribution of differences in educational attain- ment to earnings inequality using the interactive decomposition by factor sources, intro- duced in chapter two, of the Atkinson-Kolm-Sen inequality index. I first use an estimated sample-selection model to decompose predicted labour earnings of a random sample of Canadians into a base level and a part due to returns to education. I do this decomposi- tion once ignoring the effect education has on the probability of being employed and once accounting for this fact. I then calculate the contribution of these two sources of earnings to inequality measured by a S-Gini index of relative inequality for the full sample as well as two separate age cohorts. The results indicate that approximately one half to two thirds of measured inequality can be directly attributed to returns to education while the interaction between the two sources post-secondary. The fourth chapter uses the earnings model from the third chapter to conduct policy simulations for broadly based policies, low targeted policies, and high targeted policies. I demonstrate that the policies targeting low education individuals produce a larger increase in social welfare than do the other two types of policy. / Arts, Faculty of / Vancouver School of Economics / Graduate

The importance of tracking and educational reforms over the last decades in Germany, and their consequences in terms of inequalities, connects the three papers of this dissertation. In my first paper, I examine causal effects of relative school-starting age on children’s math, science, and reading competencies in primary school, as well as on teacher track recommendation at the end of grade four and actual track choice in grade five. I employ a fuzzy regression discontinuity design to account for the endogeneity of school-starting age. I find substantial positive effects on math, science, and reading competencies; my results also provide evidence that students who are the oldest in their cohort are more likely to receive a high-track teacher recommendation or attend a high-track school, compared to students who are among the youngest. I do not find differential effects depending on the student’s gender or socioeconomic background. In my second paper, I analyze the interacting influences of school type attended and school certificate earned on students’ transition chances to fully qualifying vocational training in Germany. More specifically, employing linear probability models, I explore whether those chances are different for intermediate (Realschule) certificate graduates depending on the type of school at which the certificate was obtained, and whether students attending the lowest-track Hauptschule who graduated with an intermediate certificate have better transition chances compared to their peers who earned lower school certificates. I find that intermediate certificate graduates who attended a Hauptschule have lower transition chances than intermediate certificate graduates who attended a Realschule or comprehensive school. I also find that students who attended a Hauptschule and graduated with an intermediate certificate have better transition chances compared to their Hauptschule peers who graduated with lower credentials. There is no evidence that students who earned an intermediate certificate enter vocational training positions of differing socioeconomic status or prestige depending on type of school attended. In my third paper, using school-fixed effects regression models, I investigate socioeconomic status gaps in students’ cognitive achievement in grade nine within different school types in Germany. I also explore the association between socioeconomic background and attainment of the intermediate secondary certificate and transition to upper secondary education in multi-track schools. My results provide suggestive evidence that socioeconomic status gaps in cognitive achievement exist within all school types. I also find that more privileged students are significantly more likely to earn an intermediate certificate or transition into upper secondary education. The decomposition of primary and secondary effects reveals that secondary effects are stronger at this transition in the German school system

While the phenomenon of informality in labor markets is pervasive in many parts of the world, its interaction with the aggregate behavior of economies is not well understood. In this dissertation, I explore the connection between informality and the macroeconomy in two main ways. The first way is to augment a search-and-matching model of labor markets in the tradition of Mortensen and Pissarides (1994) with aggregate shocks and an informal sector. The second is to consider an Aiyagari (1994) setting in which the existence of an informal sector feeds back into the labor income risk and savings decisions of heterogeneous agents. The parameters of both models are chosen so as to match features of micro-data I obtain from Brazil. This dissertation is thus divided into three chapters: the first one presents the data and findings from the empirical exploration. The second chapter describes the model of informality over the business cycle and presents its results. The third chapter introduces the heterogeneous agents model with informality and the conclusions derived therefrom. The first chapter divides the empirical analysis into two components. Firstly, I analyze how informality is distributed over education, income and occupational groups, and how formal-informal income differentials behave over these categories. I find that informality decreases in average income, and that the formal-informal income differential is higher among low income workers. The second component pertains to the evolution of informality over time. I show that, in the time period covered by the data, the rate of informality has a strongly cyclical pattern, which is mostly explained by cyclical variation in formal job creation. In the second chapter, in co-authorship with Livio Maya, we show in a parsimonious model of business cycles and informal labor markets that the differential risk of formal and informal contracts plays a potentially important role in generating the patterns of job creation found in the data. The main finding is that generating substantial countercyclicality in the informality rate in our calibration requires the price of risk to be highly countercyclical. In the third chapter, also in co-authorship with Livio Maya, we show the transition path of a policy designed to fight informality in a heterogeneous agents setting. The main finding is that while eliminating the informal sector makes the economy more productive and reduces unemployment in the long run, the short term impact is influenced by general equilibrium effects. In particular, unemployment increases in the short run due to the impact of the policy on interest rates. Moreover, the effects of such policy are sensitive to the assumptions on the destination of the extra tax revenues derived from increased formalization in the transition path.

Education is at the center of upskilling human capital in developing countries, thereby positively influencing economic growth and development. For decades, many education policies targeted at developing countries have been narrowly focused on improving access to basic education (Barrett et al., 2015). However, access to education does not always translate into educational attainment. Thus, beyond the initial goal of expanding access to education in developing countries, there has been a growing focus on delivering quality education on the development agenda for developing countries in recent years. One popular policy instrument in enhancing education quality has been school choice. Analysis of school choice and the subsequent academic performance outcomes can provide new insight on the economics of education to policymakers, schools, parents and students alike. This dissertation consists of three essays, which focus on understanding the demand for public schools and the returns to school quality in a merit-based competitive school assignment system. In particular, these papers investigate how positive recognition of ability through awards can affect the students’ decision-making process; what the students might gain from attending a more selective school; and how students balance between their preferences for school characteristics and maximizing their chances of admission in a competitive school choice market. Altogether, this dissertation highlights the role of information as well as educational background in explaining differences in school choice decisions and achievement outcomes. In chapter 1, I examine the role of positive recognition on students’ school choice decisions and achievement outcomes in the context of academic competitions. Academic competitions are an essential aspect of education. Given the prevalence and the amount of resources spent organizing them, a natural question that arises is the extent of the impact on winners’ education outcomes when their talent is recognized. I exploit the award structure in Vietnam’s annual regional academic competitions to answer this question. By leveraging the pre-determined share of awards, I apply a regression discontinuity design to assess the effects of receiving a Prize and receiving an Honorable Mention. I find that both types of awards lead to improvements in educational outcomes, and the results are persistent after three years. I also find some evidence of specialization associated with receiving a Prize Award. I hypothesize that long-term effects can be partially explained by school choice: winners are significantly more likely to apply to and consequently enroll in higher-quality schools. There are also prominent differences in educational choices and outcomes along gender lines: female students are more sensitive to award receipts than male students. These findings underscore the positive motivational effects of awards, even among the top performers in a highly competitive schooling market. In chapter 2, I explore the impacts of attending a selective school on students’ educational outcomes. Students in Vietnam are assigned to public high schools based on their performance in a placement exam as well as their ranked choice of schools. Public schools are often oversubscribed, which contributes to exogeneous admission score cutoffs below which students are not considered for admission. By applying a regression discontinuity research design to these admission score cutoffs, I find that students who are marginally admitted to their top-choice public schools are exposed to significantly higher-achieving peers while finding themselves at the bottom of the ability distribution. They experience some improvements in standardized test scores at the end of their high school, but fare worse in school-based achievements and graduation outcomes. These findings highlight the importance of the potential trade-offs between attending more selective schools with better peer quality while receiving a lower ordinal rank in the ability distribution in the assigned school. In addition, the impacts of selective schools on students vary along the lines of the students’ own attitude towards studying as well as their middle school educational background. This substantial heterogeneity collectively highlights the importance of considering the students’ past educational background in interpreting how selective schools might impact students’ outcomes. In chapter 3, I investigate students’ preferences, strategic behaviors and welfare outcomes under a competitive school choice market by conducting a survey on school choice participants in two school districts in Vietnam. The original survey data on school choice participants, coupled with administrative data, afford me the opportunity to understand true preferences and strategies without involving strong assumptions on the students’ beliefs. In order to balance out their own preferences and chance of admission in such a competitive setting, the majority of students exhibit strategic behaviors. However, students from less advanced educational backgrounds tend to have large belief errors and are more likely to make strategic mistakes. Consequently, these students are at a disadvantage, as they find themselves among lower-achieving peers in their new schools. With preference data from the survey, I estimate the students’ preferences for school characteristics and find evidence of heterogeneity in students’ preferences for school characteristics: students from more advanced educational backgrounds value school selectivity and teacher qualification more than their peers. Using these estimates to evaluate students’ welfare under the current assignment mechanism as well as a counterfactual strategy-proof deferred acceptance algorithm, I find that switching to deferred acceptance algorithm can be welfare-improving, particularly for high-performing students. Overall, this paper provides a starting point to directly study the drawbacks of manipulable assignment mechanisms by using survey data and highlight the potential disparity in preferences and application strategies that can further widen the gap in educational mobility.

This dissertation contributes to the ongoing debate on how educational inputs make a difference and how to allocate them efficiently. Educational inputs could be broadly defined as any personnel inputs such as teachers and career service staff, learning environment that includes peers and school facilities, and policies that facilitate learning. This dissertation explores three topics: peer effects in higher education, the consequences of college expansion, and the impacts of school closures. Chapter I estimates the peer effects of non-cognitive skills. I show how peers’ non-cognitive skills influence students' academic outcomes and own non-cognitive skills. I use a unique dataset that includes information on student non-cognitive skills, course grades, and friendship from a university in China that randomly assigns students to dormitories. My first main finding is that peers’ non-cognitive skills affect students’ academic outcomes positively but differentially. All students benefit from exposure to “persistent” peers, while students with low baseline academic ability also benefit from exposure to “motivated” peers. My second main finding is that peers also affect the development of students’ self-control and willingness to socialize. These findings have important implications in evaluating the social returns to interventions that improve non-cognitive skills and education policies that change peer group composition. Chapter II summarizes the current literature on college expansions, which change the education resource for many students. Studies have explored the impact of College Expansions that happened worldwide and this chapter summarizes literature in the field of economics of education. This chapter pays special attention to studies that explore the impact on wages and employment and how current studies identify causal relationships. Meanwhile, this chapter reviews how current studies examine the impacts of college expansion in China starting from 1999, which was unparalleled in magnitude. Finally, I discuss how future studies could improve to identify causal effects of the impact of the tremendous college expansion in China. Chapter III, a joint work with Ying Xu, estimates the effect of school closures causedby wildfires. School closures are a common and disruptive feature of education systems when sudden shocks from weather, natural disasters, or infectious disease require that students remain at home rather than in the classroom. Indeed, since January 2020, school closures have happened all around the world due to the COVID-19 pandemic. In the United States, more than 50 million students are currently out of school due to COVID-related closures. This raises an important question: How do sudden school closures affect student development in the short and medium term? In this chapter, we use administrative data to examine the causal effect of unexpected school closures, exploiting sudden variations in these closures due to wildfires in California. We show that unexpected closures have negative effects on student test scores, and the loss of school time is one of the most important mechanisms of decline in student achievement. Meanwhile, minority students and students from school districts with low socioeconomic status experience larger negative effects from such unexpected closures. We argue that these results can help inform policy to identify and address the negative impacts of such closures.

This dissertation consists of three quantitative studies analyzing educational policies and programs that help to improve college readiness, college success, as well as the transition from college to the labor market. The first chapter studies the impact of raising the bar for high school math on college readiness and success. The chapter examines the causal effects of recent state-level reforms increasing the high school graduation math requirement on high school graduation and college outcomes. Using nationally-representative survey data, the study exploits variation in the reform timing across states in a staggered difference-in-difference framework. Findings indicate that raising the high school graduation requirement in math coursework is a potentially effective policy tool to prepare students better for college, but highlight racial disparities in the effectiveness of the math reforms. The second chapter discusses experiential learning through work-based courses at 2-year and 4-year colleges. Experiential learning is a critical component for a smooth transition from higher education to the workforce. In this chapter, I apply an innovative text mining technique to identify and analyze work-based courses from transcript data. The study examines patterns and post-degree labor market outcomes of taking work-based courses at college, and has important implications for colleges and policymakers to better support students on gaining from the courses. The third chapter estimates heterogeneity in labor market returns to Master’s degrees. Using an individual fixed effects model with rich administrative data, the study provides up-to-date causal evidence on labor market returns to Master’s degrees, and examines heterogeneity in the returns by field area, student characteristics, and the macroeconomic condition in which students graduate and enter the labor market. Findings show that obtaining a Master’s degree increases quarterly earnings, but the return varies widely by field of study. And economic downturns appear to reduce but not eliminate the positive return to a Master’s degree.

This dissertation consists of three essays examining the impact of large-scale education policies changing high school duration in a sub-Saharan Africa context, specifically Ghana. These policies vary critical factors, namely instruction time and age at test, competition, and incentives to enroll in high school, which have implications for educational and labor market outcomes. I exploit these exogenous time series variations created to study impacts on learning, college application decisions, educational attainment, and labor market outcomes. A common thread across chapters is the examination of differential impact by gender or socio-economic vulnerability. In Chapter 1, I interrogate a nationwide reform in Ghana that reduced curricular pace by extending high school duration by a year without changing the breadth of the curriculum and the grade structure at lower levels of schooling. Maintaining the curriculum while increasing duration was aimed at reducing the curricular pace to one more suited to students' learning pace. This is key because, despite enormous strides in increasing school enrollment in developing countries, widespread low and stagnant learning outcomes remain a concern for policymakers and an active line of inquiry for researchers. Exploiting time-series variation from this quasi-random experiment, I implement a cohort analysis and a regression discontinuity design that leverages a compulsory school start law to examine the impact on learning at the end of high school, collegiate attainment, and labor market outcomes. I find significant positive effects on learning, with females benefiting more. Varying impact sizes across baseline ability levels suggest an extreme curricular gap in this setting. This reform has some positive impact on the decision to apply to college. Furthermore, young individuals who gain from increasing the depth of human capital but do not further their education beyond high school are more likely to be engaged in paid employment outside their household, although males drive these gains. I continue to investigate this setting in Chapter 2 by examining another nationwide reform that reduced high school duration by a year, three years after it was increased. This removal resulted in two cohorts graduating high school at the same time - the last before the removal of the extra year and the first after the removal. An immediate implication is a sharp increase in the number of students who graduated high school and could apply to university in a given year, exogenously increasing graduating cohort size. A larger high school graduating cohort size may affect human capital formation by impacting accumulated knowledge at the end of high school and collegiate attainment. Fewer high school resources per student and changes in student effort are possible mechanisms through which this cohort size can affect knowledge accumulation. On the college education market, a larger graduating cohort may signal a fall in admission probability through increased college demand if there is no expected commensurate increase in supply. In response, students may change their application strategy on the extensive and intensive margin depending on their revised admission probability estimate. I test these hypotheses by combining a cohort analysis and a regression discontinuity design leveraging a compulsory schooling law to isolate causal effects. Focusing on students with the extra year, I find a notable fall in end-of-high school performance for students who faced a larger cohort. These individuals are less likely to obtain a college degree. First, they are less likely to apply immediately after graduation, which persists for two years, suggesting many forgo applications altogether. Even when they do, universities face supply constraints and cannot absorb the increased demand. Second, they reduce the selectivity of their applications' field choices. Analogous results hold for females and economically vulnerable students. In Chapter 3, I assess a possible tradeoff between increased years of schooling and the likelihood of graduating high school in a setting where high school is neither free nor compulsory from the nationwide policy considered in Chapter 1 that increased high school duration by a year. This policy creates an exogenous shock to high school duration for the universe of middle school graduates at this transition point. Bunching in the number of students who complete the highest grade of a schooling level and then drop out is a common phenomenon. It suggests factors that change incentives to enroll at the next level may affect their continuation decisions. Using a multiple linear regression model with fixed effects to estimate the impact from this exogenous shock, I find that those who expect to be affected by the policy spend more years in pre-tertiary schooling, but this comes at a statistical and economically significant cost to graduating. This finding aligns with policymakers' concerns that some students would be precluded from obtaining a high school education. It is worth noting that sub-groups in the population who may be disadvantaged - females, students from low socio-economic backgrounds, and lower ability students are not more likely to bear the brunt. If anything, they have significantly lower costs.

The inclusion of students with disabilities in general education settings has steadily increased since the 1990s. Yet little is known about whether inclusive education is effective for these students or their non-disabled peers. I examine the impacts and associated costs of inclusive education on both student groups through the lens of one anonymous school district that implemented a policy of inclusion as the default student placement in the early 2000s. I leverage the staggered, school-level implementation in an event study model to estimate the policy’s impacts on academic and behavioral outcomes and find there were no detrimental impacts on the academic performance of students with or without disabilities as a result of the policy. Elementary and middle school students’ standardized test scores, as well as attendance rates across all school levels, were unaffected, while high school graduation and 9th grade promotion rates increased by two and six percentage points over the long term. I use a quasi-experimental synthetic control method to examine the associated costs of policy implementation, finding no short- or long-term impacts on district revenue or expenditures. Opportunity costs—a high level of investment required by school and district staff—presented the greatest implementation burden. This study offers evidence that inclusive education does not come at either high financial costs or the expense of students’ academic progress.

This dissertation consists of three essays in the fields of labor economics and education economics. The first chapter examines the effect of residential segregation on neighbor-based informal hiring. Existing works in the neighborhood effects literature have documented mixed evidence of community characteristics on employment and earnings. Yet most studies are silent on or unable to pinpoint the exact mechanisms that drive their results, making it hard to reconcile the conflicting findings. As a departure, in the first chapter, I start with a specific mechanism—job search via neighbor networks—and explore how segregation at the place of residence affects employment through this channel. In the remaining essays, I turn to the economics of education. The second chapter homes in on a specific unintended consequence of standardized testing: cheating between students on exams. While outright cheating is a common tactic to cope with grade pressure, it has received little attention from economists. My second chapter thus contributes to the sparse literature on how inordinate emphasis on exams can distort student behavior even to the test day. Finally, the third chapter revisits the popular belief that education necessarily improves cognitive skills. Insofar as one of the primary goals of school is to develop student intellect, are all years of schooling created equal? Along these lines, I question the value of the first year of high school to Chinese students in the context of the Program for International Student Assessment (PISA), an educational initiative of the Organization for Economic Cooperation and Development (OECD). To briefly recap, the first chapter studies how residential segregation by race and by education affects job search via neighbor networks. Using confidential data from the US Census Bureau, I measure segregation for each characteristic at both the individual level and the neighborhood level. Causality is achieved by interweaving a spatial framework with a mover-stayer design. The spatial component entails comparison between individuals across different hyperlocal neighborhoods (blocks) within the same reference area (block group). The focus of the comparison is existing residents on a block (stayers) with respect to newcomers (movers). Specifically, I ask: what is the likelihood that an incumbent resident—conditional on changing jobs—will join a firm that has employed a new neighbor on their block? How is this probability mediated by residential segregation? My answers to these questions are manifold. At the individual level, I find that future coworkership with new block neighbors is less likely among segregated stayers than among integrated stayers, irrespective of races and levels of schooling. The impacts are heterogeneous in magnitude, being most adverse for the most socioeconomically disadvantaged demographics: Blacks and those without a high school education. At the block level, however, higher segregation along either dimension raises the likelihood of “any” future coworkership with new block neighbors for all racial or educational “groups.” My hybrid identification strategy, capitalizing on data granularity, allows a causal interpretation of these results. Together, they point to the coexistence of homophily and in-group competition for job opportunities in linking residential segregation to neighbor-based informal hiring. My subtle findings have important implications for policy-making. The second chapter is an investigation of student cheating on high-stakes exams, a relatively understudied topic in the economics of education. The setting is Vietnam, the relevant assessment is the country’s national high school exit exams, and the (mis)behavior of interest is cheating between non-elite students and elite students who happen to sit in the same test room on test day. To quantify the pervasiveness of this misconduct, I exploit the quasi-random assignment of students from schools of varying quality into test rooms. Using micro-data from a large Vietnamese province, I find that the fraction of elite students in the same room has significantly positive effects on non-elite students’ scores when the tests are non-competitive (2007-2013). The effects are concentrated in the multiple-choice/quantitative subject tests and absent in the essay/qualitative subject tests. The average gains due to same-room elite density vary across subjects and can be as large as one point on a 0-10 grading scale. However, these effects disappear after an exam redesign in 2015 raises the stakes of the assessment (2018-2019). Similar patterns emerge when instead of quantity, the quality of the elite students in the same room is the main explanatory variable. Backed by institutional details, these findings provide credible evidence that discreet interpersonal cheating is present pre-reform, but vanishes as the reform reshuffles student incentives. The third and last chapter explores the implications for cognitive skills of increased absolute schooling at an important juncture in a student’s academic career: transition between junior high school (or middle school) and senior high school (or high school). In particular, I ask if the first year of senior secondary school (Grade 10) affects 15-year-old Chinese students’ performance on the PISA 2015. Using a fuzzy regression discontinuity design, I find that on average, this additional year of schooling has no discernible effects on Science, Math, and Reading test scores. However, there is evidence that in the PISA 2015, Chinese tenth graders have fewer hours of in-school class time in these subjects and enjoy Science and peer cooperation less than comparable Chinese ninth graders. These observations add to the disappointment left by the lack of effects on test scores, even when they are insufficient to explain it away.