1887

OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Education Quality and Labour Market Outcomes in South Africa

In this paper we include measures of school quality in regressions determining the labour market premiums to education level. We use the matric exemption score and the pupil/teacher ratio of the respondents’ closest school during childhood as proxies for education quality. We find that the employment and earnings premiums to education level are robust to the inclusion of these quality measures. Moreover, there is a significant direct relationship between our quality measures and earnings, controlling for education level. Increasing the matric exemption score by 10 percentage points increases earnings, on average, by 8% and decreasing the pupil/teacher ratio by one learner is associated with a 1% increase in earnings. No significant relationship is found between the school quality measures and employment.

This Working Paper relates to the 2013 OECD Economic Survey of South Africa, www.oecd.org/eco/surveys/listofeconomicsurveysofsouthafrica.htm.

English

Keywords: South Africa, education, employment, education quality, earnings
JEL: J21: Labor and Demographic Economics / Demand and Supply of Labor / Labor Force and Employment, Size, and Structure; I24: Health, Education, and Welfare / Education and Research Institutions / Education and Inequality; J31: Labor and Demographic Economics / Wages, Compensation, and Labor Costs / Wage Level and Structure; Wage Differentials
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error