Southern Africa Labour and Development Research Un
University of Cape Town,
Cape Town, South Africa
Institutional Affiliation: University of Cape Town
NBER Working Papers and Publications
|November 2013||Credit Constraints and the Racial Gap in Post-Secondary Education in South Africa|
with David Lam, Cally Ardington, Murray Leibbrandt: w19607
This paper analyzes the impact of high school 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 university and other forms of post-secondary education. Our results indicate that family background and high school achievement (measured by a literacy and numeracy exam and performance on the grade 12 matriculation exam) are strong predictors of post-secondary enrollment and statistically account for all of the black-white difference in enrollment. Controlling for parental education and baseline scholastic ability reduces the estimated impact of household income on university enrollment, though there continue...