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Education & Inequality
Economics of Education (Hons)
8 May 2012
Nicholas Spaull
nicspaull.com/research
nicholasspaull@gmail.com
Education & Inequality
Education
How do we define inequality?
Income
inequality?
Earnings
EDUCATION
Political
inequality?
Power
relationships
Inequality of
opportunity?
Access / life
chances
Social
inequality?
Class
Race
Gender
Language
How does education influence these inequalities?
Ed
Benefits of education
H
S
Education
E
c
$
Society
Improved human rights
Empowerment of women
Reduced societal violence
Promotion of a national (as
opposed to regional or ethnic)
identity
Increased social cohesion
Health
Lower fertility
Improved child health
Preventative health care
Demographic transition
Economy
Improvements in productivity
Economic growth
Reduction of inter-generational
cycles of poverty
Reductions in inequality
Specific references: lower fertility (Glewwe, 2002), improved child health (Currie, 2009), reduced societal violence (Salmi, 2006), promotion of a national
- as opposed to a regional or ethnic - identity (Glewwe, 2002), improved human rights (Salmi, 2006), increased social cohesion (Heyneman, 2003),
Economic growth – see any decent Macro textbook, specifically for cognitive skills see (Hanushek & Woessman 2008)
Theory: Human Capital
Education
Education increases peoples ability to add value (productivity)  HCM
+
Man

=
Skills & health
Incr MP of L

Incr profits
Incr wage
“The failure to treat human resources explicitly as a form of capital, as a produced means of
production, as the product of investment, has fostered the retention of the classical notion of
labour as a capacity to do manual work requiring little knowledge and skill, a capacity with
which, according to this notion, labourers are endowed about equally. This notion of labour
was wrong in the classical period and it is patently wrong now. Counting individuals who can
and want to work and treating such a count as a measure of the quantity of an economic
factor is no more meaningful than it would be to count the number of all manner of
machines to determine their economic importance” (Schultz, 1961, p. 3).
Elusive equity
Education
• Given the strong links between education and income, educational
inequality is a fundamental determinant of income inequality.
• Clear need to understand SA educational inequality if we are to
understand SA income inequality.
• High inequality + unemployment 2 of the most severe problems facing SA
– Educational quality is intimately intertwined with both of these.
• “Education shall be free, compulsory, universal and equal for all children”
(Freedom Charter)
Elusive equity
Education
Quality of
education
Duration
of
education
Type of
education
SA is one of the
top 3 most
unequal
countries in
the world
Between 78%
and 85% of
total inequality
is explained by
wage
inequality
Wages
• IQ
• Motivation
• Social
networks
• Discrimination
Theory – education in SA
Education
SES at birth
•Type of tertiary education
(quality) - institution and
field of study
•Demand and supply
•Individual motivation
Cognitive
ability in
early
childhood
Labour
market
performance
•Parental IQ (assortative
mating)
•Maternal health
•Nutrition
•Early cognitive
stimulation: preschool
(quantity & quality), home
environment
South
Africa
•Cost of tertiary education
(explicit & implicit costs)
•Parental & personal
aspirations and
perceptions
•Society/culture
Ultimate
educational
attainment
and quality
Educational
performance
in early
school years
•Average school SES
•Language of learning &
teaching (LOLT)
•Teacher quality
•Peer effects
•Subject choice
Educational
achievement
in matric
(See Taylor, 2010)
grade 5 reading (2006)
400
0.5
350
300
0
250
WC
GAU
NC
KZN
NW
FS
-0.5
MPU
200
SES at birth
Cognitive
ability in
early
childhood
Labour
market
performance
South
Africa
Ultimate
educational
attainment
and quality
Educational
performance
in early
school years
70%
Educational
achievement
in matric
60%
50%
40%
Pass Matric
30%
Maths passes
20%
Endorsements
10%
0%
Blacks
Coloureds
Indians
Whites
Total
HG Maths
passes
A-aggregates
For UK
Socio-economic status
1
LIM
Education
450
EC
Average reading score
Socio-economic status
Righting the wrongs...
Education
Spending per child on education by race group, 1995, 2000 and 2005
• Is spending a good proxy for
true inequalities in education?
R 7 000
1995
2000
• What are other possible
measures of progress or
improvement?
R 6 000
2005
R 5 000
R 4 000
R 3 000
• Which are most valuable?
Why?
R 2 000
R 1 000
R0
Black
Coloured
Indian
White
Intergenerational inequality
Education
Ideal world (AKA Finland  )
1. Means blind
– Ideally, an education system should be
‘means blind’ in that it offers equal
educational opportunities to all
students.
2.
Meritocratic
– Ideally, an individuals success at
school (and later in the labour-market)
should depend on ability and effort
not class or wealth.
• In SA, neither of these criteria are
met. Low quality education is a
poverty trap.
Low
quality
education
Low
social
mobility
Hereditary
poverty
SA educational inequality
Education
Two education systems not one
Education
.025
.02
.015
.01
.005
Density
• Mean >> median
• Average SA student does not exist in any
meaningful sense. Most average figures
overestimate what the majority of SA
students can do
Ex-Department
NSES Gr 4 (Taylor, 2011)
0
Language
PIRLS Gr 5 (Shepherd, 2011)
0
20
40
60
Numeracy score 2008
100
Historically white schools
Socioeconomic status
SACMEQ Gr 6 (Spaull, 2011)
.004
0
0
.002
.001
.002
Density
.003
.006
.004
.008
.005
Ex-DET/Homelands schools
80
0
200
400
reading test score
African language schools
600
800
0
200
400
600
Learner Reading Score
800
English/Afrikaans schools
Poorest 25%
Second wealthiest 25%
Second poorest 25%
Wealthiest 25%
1000
Educational inequality
Education
Spatial inequalities
• “Geography becomes critical when access to
opportunities is distributed unevenly over
space” (Yamauchi, 2011)
• Under apartheid limited movement for nonwhites
• Positive correlation between school quality
and school fees, quality education remains
concentrated in formerly white, coloured
and indian schools where the majority is
non-African.
• Think of Stellenbosch, Khayamandi and
Taylor, 2011
Cloetesville – apartheid distinctions.
Coloured children go to Rhytenbos, Black
Average
White
student knowshigh,
moreWhite
than the
children
go Gr3
to Khayamandi
average Black Gr5 student (wrote same test).
children go to Rhenish (generalization).
Does this mean more resources is the answer?
Yamauchi, 2011
Resources the issue?
Education
More reading
textbooks


More maths
textbooks
 $79/pupil
 $1225/pupil
Distribution of functional illiteracy and innumeracy by country and province
50
SACMEQ III
Education
LMP
40
TET
ECA
30
NIA
SOF
S
CAB
KZN
MPU
MAN
NAM
FST
NWP
NCA
20
M
OSHOMU
ZAM
HAR
OHA
SOU
10
GTNWES SOC
CES
B
CEN
N
OMA
KUN
KAR
KHO
GAZ
INH
SHN
NOR
WCA
CAP
KAV
MAP
ERO
OTJ
CID
GAB
10
20
30
40
50
60
Proportion functionally innumerate
Botswana & provinces
Mozambique & provinces
Namibia & provinces
South Africa & provinces
70
Table 1: Distribution of Various Schooling Statistics across School Wealth Quartiles (Grade 6 - SACMEQ III)
School Wealth Quartiles
Category
Education
Performance
Textbooks
Variable
1
2
3
4
Total
Reading score
Mathematics score
430.5
450.9
457.8
467.1
474.0
470.7
623.7
593.8
494.9
494.8
Proportion functionally illiterate
43.3%
33.3%
25.6%
4.1%
27.3%
Proportion functionally innumerate
56.9%
48.6%
44.8%
8.4%
40.2%
Reading teacher reading score
731.8
738.9
732.9
827.0
757.7
Maths teacher mathematics score
719.6
729.1
751.7
863.5
763.6
Has own reading textbook
34.4%
42.3%
38.2%
66.1%
45.0%
Has own mathematics textbook
27.6%
35.8%
32.3%
50.9%
36.4%
Gets homework "Most days of the week"
49.9%
52.1%
46.1%
75.8%
56.1%
Self-reported teacher absenteeism (days)
24.2
22.7
20.1
11.6
19.7
10.9%
9.3%
10.3%
1.8%
8.1%
Pupil-Teacher-Ratio
36.3
34.8
35.5
30.5
34.3
School in urban area
5.5%
21.4%
31.2%
73.3%
31.9%
Student very old (14y+)
23.7%
20.1%
14.0%
2.0%
15.3%
Speaks English at home 'Always'
5.6%
7.4%
9.2%
39.5%
15.3%
Student has used a PC before
11.8%
39.9%
51.4%
94.9%
47.8%
More than 10 books at home
17.3%
23.0%
30.8%
67.2%
34.1%
At least one parent has matric
29.9%
40.6%
49.3%
77.2%
48.5%
At least one parent has a degree
4.7%
7.8%
10.7%
28.7%
12.8%
Repeated at least 2 grades
School factors
Home background
Education
Education
Questions,
conclusions &
recommendations
Conclusions
Education
Low
quality
education
• Speaking of a single education system in SA
is a misnomer – the average South African
student does not exist in any meaningful
sense.
 Bimodality is a fact.
Low
social
mobility
Hereditary
poverty
• Types of inequalities?
– Income, language, geography, class,
Serious blight on the national
conscience
Persistent patterns of poverty
and privilege
Questions
Education
• If not the quality of education, what is the
driving force behind income inequality?
• Why is it so difficult to change educational
outcomes? (18 years since 1994!)
• How important are spatial inequalities in
explaining the differences? Solution?
Conclusion?
Education
• What do you think are the most important
points you’ve heard today?
Conclusion
Education
Persistent patterns of poverty and
privilege
Low
quality
education
Low
social
mobility
Hereditary
poverty
• Educational inequality is at the heart of income inequality and
poverty
– Increasing wages for the majority of Black labour market entrants is
necessary to lower income inequality
– This is not possible without improving the quality of education they
receive
• SA has 2 education systems not one
– Implications for reporting (means are misleading)
– Implications for policy
• SA cannot convert material advantage into cognitive skills
– Inefficient use of resources
Research
Education
• Do you have any interesting hypotheses you
would like to test for your theses?
• Interesting research questions to ask?
Suggestions
Education
 Get the basics right
–
–
–
–
–
–
–
–
–
Teachers need to be in school teaching
Every child (teacher) needs access to adequate learning (teaching) materials
Every school should meet basic sanitation and health requirements
Every child should receive one year of adequate quality preschool education
No child should be hungry at school (for social & cognitive reasons)
Continuous diagnostic testing to figure out what children actually know
Make sure that the curriculum is tailored to the educational needs of the majority of
students, not the top 15%
Every student MUST master the basics of foundational numeracy and literacy – these
are the building blocks of further education – weak foundations = recipe for disaster
SA is a middle income country which spends 20% (!) of all government
expenditure on education – this is not rocket science.
[ANA’s and workbooks are a very good sign – (but) need consistency and
time]
Suggestions
Education
 Acknowledge the extent of the problem
• Low quality education is one of the three largest crises facing our country (along
with HIV/AIDS and unemployment). Need the political will and public support for
widespread reform.
 Experiment to figure out what works
• More of the same hasn’t worked  Need to try new things and rigorously evaluate
them to see what works.
– Workbooks & ANA’s are a positive sign (Workbook delivery?)
– Failed programmes provide useful information when acknowledged & disseminated.
• Leave existing salaries the same but pay good teachers more – why not?
 Increase accountability, information & transparency
• Where is the money going?
• Deal ruthlessly with corruption – this is a social crime.
• For at least one grade (Gr6?) get ANA externally validated by an independent body
like Umalusi and get this information to parents  need to empower parents with
information in an accessible format
References
Education
•
•
•
•
•
•
•
•
•
•
•
Becker, G. (1962). Investment in Human Capital: A Theoretical Analysis. The Journal of Political Economy, 70(5), 9-49.
Currie, J. (2009). Healthy, Wealthy, and Wise: Socioeconomic Status, Poor Health in Childhood, and Human Capital
Development. Journal of Economic Literature, 47(1), 87-122.
Donalson, A. (1992). Content, Quality and Flexibility: The Economics of Education System Change. Spotlight 5/92.
Johannesburg: South African Institute of Race Relations.
Fleisch, B. (2008). Primary Education in Crisis: Why South African schoolchildren underachieve in reading and mathematics.
Cape Town. : Juta & Co.
Hanushek, E. & Woessmann, L. (2008). The Role of Cognitive Skills in Economic Development. Stanford Institute for Economic
Policy Research Working Paper No. 07-34.
Hoadley, U. (2010). What do we know about teaching and learning in primary schools in South Africa? Stellenbosch:
Appendix B to Van der Berg, S; Meyer, H; Reeves, C; van Wyk, C; Hoadley, U; Bot, M; & Armstrong, P 2010. 'Grade 3
Improvement Project: Main report and Recommendations" for Western Cape Education Department.
Schultz, T. (1961). Investment in Human Capital. The American Economic Review , 51 (1), 1-17.
Shepherd, D. (2011). Constraints to School Effectiveness: What prevents poor schools from delivering results? Stellenbosch
Economic Working Papers 05/11.
Spaull, N. (2011). Primary School Performance in Botswana, Mozambique, Namibia and South Africa: A Comparative Analysis
of SACMEQ III. SACMEQ Working Papers , 1-74.
Taylor, S. (2011). Uncovering Indicators of Effective School Management in South Africa using the National School
Effectiveness Study. Stellenbosch Economic Working Papers .
Van der Berg, S. (2007). Apartheid's Enduring Legacy: Inequalities in Education. Journal of African Economies, 16(5), 849-880.
Education
Thank you
www.nicspaull.com/research
nicholasspaull@gmail.com
@NicSpaull
Public Current expenditure on
Country
Total population Adult literacy
(mil)
rate
Net Enrolment
Rate (2008)
GNP/cap PPP primary education per pupil (unit
US$ (2008)
cost) 2007 – [PPP constant 2006
US$]
Education
Survival rate to
Grade 5: school
year ending 2007
Botswana
1.92
83%
87%
13100
1228
89%3
Mozambique
22.38
54%
80%
770
792
60%
Namibia
2.13
88%
89%
6270
668
87%3
South Africa
49.67
89%
87%
9780
1225
98%
(UNESCO, 2011)
(UNESCO, 2011)
(UNESCO, 2011)
(UNESCO, 2011)
(UIS, 2009)
(UNESCO, 2011)
Source
SACMEQ III
(2007)
Self-reported teacher
absenteeism
Proportion of Grade 6
students functionally
illiterate
Proportion of Grade 6
students functionally
innumerate
Proportion of students Proportion of students
with own reading
with own mathematics
textbook
textbook
Botswana
10.6 days
10.62%
22.48%
63%
62%
Mozambique
6.4 days
21.51%
32.73%
53%
52%
Namibia
9.4 days
13.63%
47.69%
32%
32%
South Africa
19.4 days
27.26%
40.17%
45%
36%
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