David Lam - University of Michigan

Credit Constraints and the Racial Gap in Post-Secondary Education in South Africa

    Date:  04/05/2012 (Thu)

    Time:  3:30pm- 5:00pm

    Location:  Seminar will be held on-site: Breedlove Room, 204 Perkins Library

    Organizer:  Elizabeth Frankenberg

Meeting Schedule: Login or email the organizer to schedule a meeting.

    All meetings will be held in the same location as the seminar unless otherwise noted.

   10:30am - Elizabeth Frankenberg (202 SocSci)

   11:00am - Michael Burrows, Evan Peet, Andrea Velasquez (202 SocSci)

   11:50pm - Lunch w/ Elizabeth Frankenberg, Romeo Gansey, Greg Callanan, Sunny Ladd, Michael Case

    1:00pm - Meetings with DuPRI students (Ryan Brown, Nick Ingwersen, Gabriela Farfan, Dan LaFave, Ava Gail Cas) OPEN

    1:45pm - Erica Field (202 SocSci)

    2:15pm - Giovanna Merli (202 SocSci)

   2:50pm - Amar Hamoudi (202 SocSci)

    3:15pm - Seminar Prep

    3:30pm - Seminar Presentation (3:30pm to 5:00pm)

    6:00pm - Dinner w/ Elizabeth Frankenberg, Amar Hamoudi, Jenna Nobles, OPEN

    Additional Comments:  Abstract: This paper analyzes the impact of baseline household income and scholastic ability on post-secondary enrollment in South Africa. Using longitudinal data from the Cape Area Panel Study (CAPS), we analyze the large racial gaps in the proportion of high school graduates who enroll in post-secondary education. Our results indicate that baseline income and ability (measured in CAPS’ literacy and numeracy evaluation) are strong predictors of post-secondary enrollment and statistically account for all of the black-white difference in enrollment. Controlling for parental schooling and baseline scholastic ability reduces the estimated impact of household income on enrollment, consistent with similar studies done in the United States. Two measures of short-term income variability do not have statistically significant effects on enrollment. While credit constraints may play a role, the evidence suggests that eliminating financing constraints would have only a modest impact on reducing the large racial gap in post-secondary enrollment.