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Table A4 Schooling type and labor market outcomes, by race

From: Safety valve or sinkhole? Vocational schooling in South Africa

Outcome

(log) wages

Employment

Formal search

Race

Black

Coloured

Black

Coloured

Black

Coloured

 

(1)

(2)

(3)

(4)

(5)

(6)

Academic

0.08

0.09

0.04

0.05

0.06

0.04

 

(0.02)***

(0.01)***

(0.01)***

(0.01)***

(0.03)**

(0.02)**

Vocational

0.17

0.10

0.06

0.13

-0.06

0.22

 

(0.01)*

(0.04)**

(0.03)*

(0.04)***

(0.18)

(0.10)**

Observations

1,388

2,452

6,576

7,878

449

848

R-squared

0.18

0.22

0.16

0.25

0.07

0.06

No. individuals

678

998

1,437

1,374

356

676

H 0: academic=vocational

0.34

0.79

0.53

0.07

0.51

0.07

U/O: academic

8.0

2.9

5.2

-3.3

3.6

1.6

U/O: vocational

-2.8

1.2

-2.2

-2.4

-1.7

56.9

  1. Robust standard errors in parentheses, clustered by individual. * significant at 10%; ** significant at 5%; *** significant at 1%. Unit of observation is person-year. Sample restricted to person-years with at least 9 years completed schooling and not currently enrolled. Excludes person-years corresponding to Wave 5 for which fraudulent fieldwork suspected. Wages are log of monthly full-time equivalent wages based on 160 hours/month. Wages refer to self-reported earnings on current or most recent jobs held among those not enrolled in school, regardless of current employment status, FTE based on 160 hours worked/month. Employment restricted to periods when not enrolled in school. Dependent variable in formal search regressions is indicator for job acquisition through formal method. Formal method of job acquisition refers to responding to ad, sending CV, visiting firm, or using employment agency. All regressions include race, gender, and calendar year dummies; and controls for age-adjusted LNE z-score, experience, experience squared, age, and age squared. Vocational schooling includes NTC and other technical secondary, and universities of technology. Reported test statistics are p-values of indicated null hypothesis. U/O ratio: ratio of selection on unobservables/observables required to explain away effect of schooling variable on outcome, obtained as β C β NC β C , where β C is schooling coefficient from model with included controls and β N C is schooling coefficient from model without controls. Controls as indicated and described above. See B The sinkhole hypothesis and selection on unobservables for details. Survey weights applied.