RACE, EQUITY, AND PUBLIC SCHOOLS 19
Table 2.1 Learner-educator ratios by population group, 1996 and 2000 Population group African White
Primary school 1996 2000
Secondary school 1996 2000
36.211 31.465
31.975 31.052
26.151 25.790
22.329 24.203
28.736 29.996
23.196 30.157
27.753 32.806
23.415 30.447
Sources: Republic of South Africa, Department of Education (1996, 2000). Note: Sample means are shown by population group.
39.673 40.833
38.145 35.996
Colored Indian/Asian New schools
Yogo’s estimates of the impact of LER on returns to schooling investments, for example, the marginal effect of LER on rate of return is around 0.002. The mean LER gap between formerly African and white primary schools, 10.060 in 1996 (Table 2.1), is equivalent to a reduction of 0.0201 in the rate of returns. The reduction is substantial because the average rate of return was 0.089–0.094 for men age 24–28 in 1996. Thus we can infer that inequality in educational opportunities (that is, gaps in LER) is transformed into inequal- ity in labor market earning opportunities in South Africa.2 The organization of this chapter is as follows. The next section sets up a simple framework in which liquidity constraint is highlighted. The follow- ing section describes the data that I use in the analysis, SRN 1996 and 2000. The surveys focus particularly on school facility information, in addition to basic information such as the numbers of educators and learners.3 To identify the former racial groups of those schools, SRN 2000 provides information on the departments that governed the schools under apartheid. Therefore, merging the two surveys, I can systematically track former apartheid depart- ments. I exclude from the analysis of the sample the provinces of Gauteng, Mpumalanga, and Northern Cape since they changed school registration codes
2 Yamauchi (2003) shows that grade repetition increases the probability of transition from school to labor market in South Africa and that it adversely affects employment probability, particu- larly for men. Other conditions being equal, grade repetition is positively correlated with LER,
as more learners remain enrolled longer. 3 However, the SRN lacks information on financial conditions and learner performance. In recent years, the Annual School Surveys have started collecting information on school facilities. In previous studies using SRN 1996, Bot, Wilson, and Dove (2000) completed a districtwise charac- terization of school environments from various perspectives. The National Department of Educa- tion (2002) conducted a provincial-level characterization of SRN 1996 and 2000 and described dynamic changes in South African education. In these studies, however, the data were not ana- lyzed statistically.
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