Education & InequalityEconomics of Education (Hons)8 May 2012

Nicholas Spaullnicspaull.com/researchnicholasspaull@gmail.com

Education & InequalityHow do we define inequality?

How does education influence these inequalities?

EDUCATION

Benefits of education

Improvements in productivityEconomic growthReduction of inter-generational cycles of povertyReductions in inequality

Lower fertilityImproved child healthPreventative health careDemographic transition

Improved human rightsEmpowerment of womenReduced societal violencePromotion of a national (as opposed to regional or ethnic) identityIncreased social cohesion

SocietyHealthEconomySpecific 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 CapitalEducation increases peoples ability to add value (productivity) HCM

+=

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 equityGiven 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 SAEducational quality is intimately intertwined with both of these.

Education shall be free, compulsory, universal and equal for all children (Freedom Charter)

Elusive equityIQMotivationSocial networksDiscrimination

Theory education in SA

Cost of tertiary education (explicit & implicit costs)Parental & personal aspirations and perceptionsSociety/culture

Parental IQ (assortative mating)Maternal healthNutritionEarly cognitive stimulation: preschool (quantity & quality), home environmentAverage school SESLanguage of learning & teaching (LOLT)Teacher qualityPeer effectsSubject choice

Type of tertiary education (quality) - institution and field of studyDemand and supplyIndividual motivation

(See Taylor, 2010)

Righting the wrongs...Is spending a good proxy for true inequalities in education?

What are other possible measures of progress or improvement?

Which are most valuable? Why?

Intergenerational inequalityIdeal world (AKA Finland )Means blindIdeally, an education system should be means blind in that it offers equal educational opportunities to all students.MeritocraticIdeally, 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.

SA educational inequality

Two education systems not oneLanguage PIRLS Gr 5 (Shepherd, 2011)Ex-Department NSES Gr 4 (Taylor, 2011)Socioeconomic statusSACMEQ Gr 6 (Spaull, 2011)Mean >> medianAverage SA student does not exist in any meaningful sense. Most average figures overestimate what the majority of SA students can do

Educational inequalityDoes this mean more resources is the answer?Average White Gr3 student knows more than the average Black Gr5 student (wrote same test).Spatial inequalitiesGeography becomes critical when access to opportunities is distributed unevenly over space (Yamauchi, 2011)Under apartheid limited movement for non-whitesPositive 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 Cloetesville apartheid distinctions. Coloured children go to Rhytenbos, Black children go to Khayamandi high, White children go to Rhenish (generalization).

Resources the issue?More maths textbooksMore reading textbooks $79/pupil $1225/pupil

Table 1: Distribution of Various Schooling Statistics across School Wealth Quartiles (Grade 6 - SACMEQ III)CategoryVariableSchool Wealth Quartiles1234TotalPerformanceReading score430.5457.8474.0623.7494.9Mathematics score450.9467.1470.7593.8494.8Proportion functionally illiterate43.3%33.3%25.6%4.1%27.3%Proportion functionally innumerate56.9%48.6%44.8%8.4%40.2%Reading teacher reading score731.8738.9732.9827.0757.7Maths teacher mathematics score719.6729.1751.7863.5763.6TextbooksHas own reading textbook34.4%42.3%38.2%66.1%45.0%Has own mathematics textbook27.6%35.8%32.3%50.9%36.4%School factorsGets homework "Most days of the week"49.9%52.1%46.1%75.8%56.1%Self-reported teacher absenteeism (days)24.222.720.111.619.7Repeated at least 2 grades10.9%9.3%10.3%1.8%8.1%Pupil-Teacher-Ratio36.334.835.530.534.3School in urban area5.5%21.4%31.2%73.3%31.9%Student very old (14y+)23.7%20.1%14.0%2.0%15.3%Home backgroundSpeaks English at home 'Always'5.6%7.4%9.2%39.5%15.3%Student has used a PC before11.8%39.9%51.4%94.9%47.8%More than 10 books at home17.3%23.0%30.8%67.2%34.1%At least one parent has matric29.9%40.6%49.3%77.2%48.5%At least one parent has a degree4.7%7.8%10.7%28.7%12.8%

Questions, conclusions & recommendations

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.

Types of inequalities? Income, language, geography, class,

ConclusionsSerious blight on the national consciencePersistent patterns of poverty and privilege

QuestionsIf 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?What do you think are the most important points youve heard today?

ConclusionEducational inequality is at the heart of income inequality and povertyIncreasing wages for the majority of Black labour market entrants is necessary to lower income inequalityThis is not possible without improving the quality of education they receiveSA has 2 education systems not oneImplications for reporting (means are misleading)Implications for policySA cannot convert material advantage into cognitive skillsInefficient use of resources

Persistent patterns of poverty and privilege

ResearchDo you have any interesting hypotheses you would like to test for your theses?

Interesting research questions to ask?

Get the basics rightTeachers need to be in school teachingEvery child (teacher) needs access to adequate learning (teaching) materialsEvery school should meet basic sanitation and health requirementsEvery child should receive one year of adequate quality preschool educationNo child should be hungry at school (for social & cognitive reasons)Continuous diagnostic testing to figure out what children actually knowMake 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.[ANAs and workbooks are a very good sign (but) need consistency and time]Suggestions

SuggestionsAcknowledge 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 worksMore of the same hasnt worked Need to try new things and rigorously evaluate them to see what works. Workbooks & ANAs 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 & transparencyWhere 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

ReferencesBecker, 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.

Thank youwww.nicspaull.com/researchnicholasspaull@gmail.com@NicSpaull

CountryTotal population (mil)Adult literacy rateNet Enrolment Rate (2008)GNP/cap PPP US$ (2008)Public Current expenditure on primary education per pupil (unit cost) 2007 [PPP constant 2006 US$]Survival rate to Grade 5: school year ending 2007Botswana1.9283%87%13100122889%3Mozambique22.3854%80%77079260%Namibia2.1388%89%627066887%3South Africa49.6789%87%9780122598%Source(UNESCO, 2011)(UNESCO, 2011)(UNESCO, 2011)(UNESCO, 2011)(UIS, 2009)(UNESCO, 2011)

SACMEQ III (2007)Self-reported teacher absenteeismProportion of Grade 6 students functionally illiterateProportion of Grade 6 students functionally innumerateProportion of students with own reading textbookProportion of students with own mathematics textbookBotswana10.6 days10.62%22.48%63%62%Mozambique6.4 days21.51%32.73%53%52%Namibia9.4 days13.63%47.69%32%32%South Africa19.4 days27.26%40.17%45%36%

*******These graphs are from Spaull (2011), Taylor (2011), Moses (2011) and Van Broekhuizen (2012 tut slides)********[1] By this definition, a functionally illiterate learnercannotreada short and simple text and extractmeaning, while a functionally innumerate learnercannot translate graphical information into fractions or interpret everyday units of measurement. See Shabalala (2005, p. 222) and Spaull (2011, p. 33) for further information.

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