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18 CHAPTER 2


To study gaps in educational quality across population groups, I focus on the ratio of learners to educators (teachers and other staff)—the learner- educator ratio (LER)—from two school censuses, SRN 1996 and 2000. In 1995 the government reached an agreement that ratios of 40:1 and 35:1 were to be achieved for primary and secondary schools, respectively, in the next five years. Therefore, LER can provide a good indicator not only of the distribu- tion of education quality but also of the government’s policy interventions to achieve educational equity.


Recent empirical work shows significant effects of LER and class size on learner achievement, although the literature as a whole contains some ambiguity (Hanushek 1998). The difficulty in identifying causality arises from potential endogeneity in the number of learners and unobserved fixed com- ponents specific to school and community, which is likely to be correlated with school inputs.1 For example, Lazear (2001) argues that the effect of LER on learner achievement could be empirically ambiguous because of (often unobserved) heterogeneity in learner quality, that is, discipline. In his model, the optimal size of a class (LER) increases if learner discipline improves, since the probability of disruption in a classroom decreases. To avoid such a correlation between LER and unobservables, recent studies use exogenous variations (changes) in LER and class size to identify the effect on learner achievement (for example, Angrist and Lavy 1999; Case and Deaton 1999; Krueger 1999; Hoxby 2000). In these studies with exogenous variations in LER, the effect is found to be significant. In the context of South Africa, Case and Deaton (1999) show that among Africans under apartheid who were not free to choose schools, LER has a significant effect on learner achievement, par- ticularly in numeracy, while its effect is not significant among whites. Table 2.1 compares means of LERs by population groups in both 1996 and 2000. A striking fact evident from the table is that the gap between formerly African and white schools did not narrow during the period. Formerly white schools maintained their superior situation in the post-apartheid period. Though more detailed statistical analysis is provided in the section on empiri- cal findings, the difference between formerly African and white schools seems persistent and stable.


The LER gaps can have long-term implications. For instance, school qual- ity matters in subsequent labor market outcomes (Card and Krueger 1996; Case and Yogo 1999; Dustman, Rajah, and Soest 2003). Based on Case and


1 High LERs are partly attributed to high grade repetition rates in South Africa. However, those who have repeated grades are more likely to transition to labor markets (Yamauchi 2003, using data from the KwaZulu-Natal Income Dynamics Study).


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