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Shadow education : School quality and demand for private tutoring in Korea

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Frame of Image r education alongside formal schooling. Korean households spend about 2.9% of GDP on private tutoring at the primary and secondary levels, a figure within striking distance of 3.4% in public expenditure for formal schooling. This paper presents econometric evidence that lower school quality stimulates demand for private tutoring significantly. The result supports the view that institutional features in student’s learning environments are among the key driving factors for the demand for the shadow education, and not just high-stakes tests and academic achievement incentives. The result is also in line with the view that the mushrooming of private tutoring is a natural market response to underprovided and overregulated formal schooling in Korea.
†JEL classification codes: I2, H4, O15. ‡Key words: private tutoring, school quality, choice in education.
The author feels indebted to Prof. Young Lee and Dr. Chunsik Woo for helpful comments and encouragement and to Prof. Kisun Sung for providing critical data. Financial support from the KDI School of Public Policy and Management is gratefully acknowledged. Jiyoung Lee provided diligent research assistance. Correspondences should be directed to Taejong Kim, KDI School, P.O.Box 184 Cheong-nyang, Seoul 130650, Korea. The author may also be contacted at tjkim@kdischool.ac.kr via email, or at +81-(0)2-3299-1085 by phone. This is a preliminary draft, and comments and suggestions will be appreciated.
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School Quality and Private Tutoring
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Full Text
Title Shadow education
Similar Titles
Sub Title

School quality and demand for private tutoring in Korea

Material Type Reports
Author(English)

Kim, Taejong

Publisher

[Seoul]:KDI school of Public Policy and Management

Date 2004-10
Series Title; No Working papers
Pages 21
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Social Development < Education
Holding KDI school of Public Policy and Management

Abstract

Private tutoring is known to be pervasive in many parts of the world, and yet has
received scanty attention from economists. This paper empirically examines the determinants
of the demand for private tutoring in South Korea, where the thriving and
expanding industry of private tutoring industry already constitutes a major conduit for
education alongside formal schooling. Korean households spend about 2.9% of GDP on
private tutoring at the primary and secondary levels, a figure within striking distance
of 3.4% in public expenditure for formal schooling. This paper presents econometric
evidence that lower school quality stimulates demand for private tutoring significantly.
The result supports the view that institutional features in student’s learning environments
are among the key driving factors for the demand for the shadow education,
and not just high-stakes tests and academic achievement incentives. The result is also
in line with the view that the mushrooming of private tutoring is a natural market
response to underprovided and overregulated formal schooling in Korea.