Do education vouchers prevent dropout at private high schools? Evidence from Japanese policy changes

Although education voucher programs for students attending private high schools have existed in Japan for decades, to date there have been no studies that examine their effectiveness. In this study, we estimate the programs’ preventative effect on dropout by using school-track level (academic or vocational) panel data covering all high schools in northern Japan. Prefectural governments have faced increasing dropout rates stemming from financial difficulties, and expanded the scope and amount of their private high school tuition support programs since the late 1990s. We use this variation to identify the effect of tuition support on students’ dropout decisions, controlling for initial academic ability of students entering the schools and unobservable school-track effects. We also apply the instrumental variable method to account for the possible endogeneity of policy changes. Our results suggest that increasing tuition support is particularly effective in preventing the dropout of private high school students on nonacademic tracks.     

Infrastructure and Growth in South Africa: Direct and Indirect Productivity Impacts of 19 Infrastructure Measures

Empirical explorations of the growth and aggregate productivity impacts of infrastructure have been characterized by ambiguous (countervailing signs) results with little robustness. This paper, utilizing panel data for South African manufacturing over the 1970–2000 period, and a range of 19 infrastructure measures, explores the question of infrastructure endogeneity in output equations. The paper develops an instrumentation strategy generalizable to other contexts. Controlling for the possibility of endogeneity in the infrastructure measures renders the impact of infrastructure capital not only positive, but of economically meaningful magnitudes.     

Underemployment in South Africa

With the introduction of the Quarterly Labour Force Survey since 2008, a newly derived variable, namely underemployed, has become available. It is derived according to the ‘time-related’ approach (i.e. those who are employed, but would like to work longer hours and are available to work longer hours in the near future). However, underemployment could also be derived according to the ‘inadequate employment situations’ approach (e.g. under-utilisation of skills, over-qualification). Because underemployment is a seriously under-researched topic in South Africa, this article investigates the extent of underemployment according to these two definitions, before examining whether the characteristics of the two groups of underemployed are significantly different.     

An investigation into food-away-from-home consumption in South Africa

Food policy that ignores food-away-from-home (FAFH) in a developing country like South Africa will be misleading given changes in demand for food over time. This study contributes to our understanding of the factors that influence the demand for FAFH in South Africa. Using panel data from the Income and Expenditure Survey, this study analyses the effects of income and socio-demographic variables on FAFH expenditure using a double-hurdle model. The results show that small-sized households headed by younger white females/males and living in an urban settlement are most likely to purchase FAFH while male-headed households spend more than female-headed households. Furthermore, income of the household head is an important determinant of household FAFH expenditures. The income elasticity of expenditure on FAFH is inelastic and a normal good. The small size of the participation elasticities means that growth in the FAFH sector will be driven by households with existing expenditure.     

‘Fit to play’: Labour market behaviour in a cohort of public-sector antiretroviral treatment patients

Given the rapid scale-up of antiretroviral treatment (ART), it is necessary to explore the impact of ART on labour force participation, employment and labour productivity. This article investigates labour market outcomes in a prospective cohort of public-sector ART clients in the Free State province of South Africa. Empirical results suggest that labour force participation increased markedly as the proportion of those too ill to work declined, becoming indistinguishable from participation rates in the general population. Unemployment rates, however, remain above those reported for the general population. ART and its health-related benefits therefore translate into increases in labour force participation, but not employment. Employment status at HIV diagnosis strongly predicts absorption in the labour force. Public-sector ART clients should be referred to vocational rehabilitation and occupational therapy programmes, and to welfare-to-work programmes, and the unskilled to adult education and training and further education and training programmes.