56 CHAPTER 3


areas, respectively. Schools under the other former departments for the Afri- can population are located in predominantly African residential areas. To disentangle the spatial relationship between school fees and popula- tion composition, Figure 3.3A shows kernel regression line linking school fees to the proportion of whites in a given subplace. Given that the movement of the African population to formerly white residential areas was prohibited under the apartheid regime and is still limited today for financial reasons, the proportion of whites in the population tells us whether a particular school is located in a formerly white area.


Interestingly, in Figure 3.3B the distribution falls into two groups (concen- trations). Higher school fees are likely to be charged in the areas where the majority population is white.14 Figure 3.3 (together with Figure 3.2 and Table 3.1) demonstrates not only the systematic segregation policy in the education system under the apartheid regime, but also that location factors and spatial segregation of different socioeconomic groups (correlated with population groups) are important in determining opportunities for quality education in the next generation.


The Effects of Local Characteristics on School Fees


Table 3.2 shows two sets of results, for South Africa as a whole and for its metropolitan areas (Johannesburg, Cape Town, and Durban) where popula- tion inflow has been significant since 1994. Each specification includes dis- trict fixed effects.


The points observed in the previous section are confirmed, namely that for- mer education departments and the proportion of whites in the population in a given subplace influence the ability to pay for education quality. In addition, the implications listed in “Empirical Framework and Data” are tested here. Income opportunities are measured by average household income, the average years of schooling in the population aged 20–64, and the unemployment rate. To characterize the economic values of residential areas, the distribution of settlement types and population density from the 2001 census are used. Column 1 lists factors that represent apartheid regime and type of resi- dential area. First, the proportion of Africans and whites in the population has significant negative and positive effects on school fees, respectively. Colored and Indian/Asian cases have been omitted. It is clear that the spatial segregation of population groups significantly affects school fees.


14 In general Africans move into formerly white residential areas, while whites do not move into predominantly African residential areas. There are some exceptions, such as downtown Johan- nesburg, where the inflow of Africans adversely affected white businesses, causing whites to move to new suburban areas.


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