Home Business & Economics Learning with Differing-Ability Peers: Evidence from a Natural Experiment in South Korea
Article
Licensed
Unlicensed Requires Authentication

Learning with Differing-Ability Peers: Evidence from a Natural Experiment in South Korea

  • Seungwoo Chin ORCID logo EMAIL logo and Eunjee Kwon
Published/Copyright: September 21, 2022

Abstract

Whether to group students based on their prior academic achievements has been at the center of policy and research debate. This article explores a quasi-experimental setting in South Korea where the “Equalization Policy” replaced ability-tracking in high school students’ allocation. The policy abolished high school entrance exams and began assigning students to high schools without considering students’ prior academic performance, which exposed students to an ability-mixing learning environment. Using a difference-in-difference approach, we show that ability-mixing considerably reduces the number of low-performers in a national college entrance test. At the same time, high-performers are hardly affected by the policy changes. We document that the behavioral changes of low-performing students may drive the main results. In contrast, we find no evidence that grouping mechanisms affect teacher-pupil interaction and teacher quality.

JEL Classification: I21; I28; J24

Corresponding author: Seungwoo Chin, Deputy Director, G20 Financial Cooperation Division, Ministry of Economy and Finance, Sejong Government Complex, 477, Galmae-ro, Sejong-si 30109, Korea, E-mail:

Funding source: University of Southern California

Award Identifier / Grant number: Unassigned

Acknowledgement

We are grateful to Professor Matthew E. Kahn for his guidance. This paper has benefited substantially from feedback provided by Hyungsik Moon, John Strauss, Jeffrey Nugent, Sandra Rozo, Christian Redfearn, Youngchul Kim, and seminar participants at the University of Southern California, Western Economic Association International Annual Meeting (San Diego, 2017), International Association for Applied Econometrics (Montreal, 2018) and the Center for Economic and Social Research. We thank the Ministry of Education in South Korea for providing us with data. All errors are our own.

  1. Research funding: This work was supported by University of Southern California.

Appendix
Table A1:

Implementation year of the equalization policy.

Cities Ulsan Seoul Busan Daegu Gwangju Incheon Daejeon
(treated) (control) (control) (control) (control) (control) (control)
Year 2000 1974 1974 1975 1975 1975 1979
  1. Before the E.P. policy, all the cities’ high school admission was based on the tracking system. As the policy was implemented at the city-level, there was no across school district heterogeneity in the timing of the policy adaptation.

References

Abdulkadiroglu, A., and T. Sönmez. 2003. “School Choice: A Mechanism Design Approach.” The American Economic Review 93 (3): 729–47. https://doi.org/10.1257/000282803322157061.Search in Google Scholar

Abdulkadiroğlu, A., P. A. Pathak, A. E. Roth, and T. Sönmez. 2005. “The Boston Public School Match.” The American Economic Review 95 (2): 368–71. https://doi.org/10.1257/000282805774669637.Search in Google Scholar

Ahn, T., and Y.-G. Goh. 2021. “The Long-Term Influences of Ability Mixing on Soft Skills.” Journal of Economic Behavior & Organization 191: 367–86. https://doi.org/10.1016/j.jebo.2021.09.008.Search in Google Scholar

Bayer, P., F. Ferreira, and R. McMillan. 2007. “A Unified Framework for Measuring Preferences for Schools and Neighborhoods.” Journal of Political Economy 115 (4): 588–638. https://doi.org/10.1086/522381.Search in Google Scholar

Benabou, R. 1993. “Workings of a City: Location, Education, and Production.” Quarterly Journal of Economics 108 (3): 619–52. https://doi.org/10.2307/2118403.Search in Google Scholar

Benabou, R. 1996. “Equity and Efficiency in Human Capital Investment: The Local Connection.” The Review of Economic Studies 63 (2): 237–64. https://doi.org/10.2307/2297851.Search in Google Scholar

Birdsall, N. 1985. “Public Inputs and Child Schooling in Brazil.” Journal of Development Economics 18 (1): 67–86. https://doi.org/10.1016/0304-3878(85)90007-0.Search in Google Scholar

Booij, A. S., E. Leuven, and H. Oosterbeek. 2017. “Ability Peer Effects in University: Evidence from a Randomized Experiment.” The Review of Economic Studies 84 (2): 547–78.Search in Google Scholar

Brunello, G., and D. Checchi. 2007. “Does School Tracking Affect Equality of Opportunity? New International Evidence.” Economic Policy 22 (52): 782–861. https://doi.org/10.1111/j.1468-0327.2007.00189.x.Search in Google Scholar

Card, D., and L. Giuliano. 2016. “Can Tracking Raise the Test Scores of High-Ability Minority Students?” The American Economic Review 106 (10): 2783–816. https://doi.org/10.1257/aer.20150484.Search in Google Scholar

Carrell, S. E., B. I. Sacerdote, and J. E. West. 2013. “From Natural Variation to Optimal Policy? The Importance of Endogenous Peer Group Formation.” Econometrica 81 (3): 855–82.10.3982/ECTA10168Search in Google Scholar

Choi, E. J., H. R. Moon, and G. Ridder. 2014. “Estimation of an Education Production Function under Random Assignment with Selection.” The American Economic Review 104 (5): 206–11. https://doi.org/10.1257/aer.104.5.206.Search in Google Scholar

Duflo, E., P. Dupas, and M. Kremera. 2011. “Peer Effects, Teacher Incentives, and the Impact of Tracking: Evidence from a Randomized Evaluation in Kenya.” The American Economic Review 101 (5): 1739–74. https://doi.org/10.1257/aer.101.5.1739.Search in Google Scholar

Dustmann, C., P. A. Puhani, and U. Schönberg. 2017. “The Long-Term Effects of Early Track Choice.” The Economic Journal 127 (603): 1348–80. https://doi.org/10.1111/ecoj.12419.Search in Google Scholar

Gamoran, A., and R. D. Mare. 1989. “Secondary School Tracking and Educational Inequality: Compensation, Reinforcement, or Neutrality?” American Journal of Sociology 94 (5): 1146–83. https://doi.org/10.1086/229114.Search in Google Scholar

Garlick, R. 2018. “Academic Peer Effects with Different Group Assignment Policies: Residential Tracking versus Random Assignment.” American Economic Journal: Applied Economics 10 (3): 345–69. https://doi.org/10.1257/app.20160626.Search in Google Scholar

Goodman-Bacon, A. 2021. “Difference-in-differences with Variation in Treatment Timing.” Journal of Econometrics 225 (2): 254–77. https://doi.org/10.1016/j.jeconom.2021.03.014.Search in Google Scholar

Hahn, S., T. Sung, and J. Baek. 2008. “Mixing versus Sorting: Entering Top Universities.” Economics Letters 100 (1): 43–6. https://doi.org/10.1016/j.econlet.2007.10.028.Search in Google Scholar

Hahn, Y., L. C. Wang, and H.-S. Yang. 2018. “Does Greater School Autonomy Make a Difference? Evidence from a Randomized Natural Experiment in South Korea.” Journal of Public Economics 161: 15–30. https://doi.org/10.1016/j.jpubeco.2018.03.004.Search in Google Scholar

Hanushek, E. A., and S. G. Rivkin. 2006. “Teacher Quality.” In Handbook of the Economics of Education, Vol. 2, 1051–78. Amsterdam, Netherlands: Elsevier B.V.10.1016/S1574-0692(06)02018-6Search in Google Scholar

Hanushek, E. A., and L. Wößmann. 2006. “Does Educational Tracking Affect Performance and Inequality? Differences-in-Differences Evidence across Countries.” The Economic Journal 116 (510): C63–76.10.3386/w11124Search in Google Scholar

Kang, C., C. Park, and M.-J. Lee. 2007. “Effects of Ability Mixing in High School on Adulthood Earnings: Quasiexperimental Evidence from South Korea.” Journal of Population Economics 20 (2): 269–97. https://doi.org/10.1007/s00148-006-0090-y.Search in Google Scholar

Kim, S., and J.-H. Lee. 2010. “Private Tutoring and Demand for Education in South Korea.” Economic Development and Cultural Change 58 (2): 259–96. https://doi.org/10.1086/648186.Search in Google Scholar

Kim, T., J.-H. Lee, and Y. Lee. 2008. “Mixing versus Sorting in Schooling: Evidence from the Equalization Policy in South Korea.” Economics of Education Review 27 (6): 697–711. https://doi.org/10.1016/j.econedurev.2006.07.014.Search in Google Scholar

Kim, Y.-C., Y.-J. Kim, and G. C. Loury. 2014. “Widening Gap in College Admission and Improving Equal Opportunity in South Korea.” Global Economic Review 43 (2): 110–30. https://doi.org/10.1080/1226508x.2014.920241.Search in Google Scholar

Lee, Y. S. 2014. “Exams, Districts, and Intergenerational Mobility: Evidence from South Korea.” Labour Economics 29: 62–71. https://doi.org/10.1016/j.labeco.2014.05.006.Search in Google Scholar

Pop-Eleches, C., and M. Urquiola. 2013. “Going to a Better School: Effects and Behavioral Responses.” The American Economic Review 103 (4): 1289–324. https://doi.org/10.1257/aer.103.4.1289.Search in Google Scholar

Rice, J. K. 2003. Teacher Quality: Understanding the Effectiveness of Teacher Attributes. Washington, DC: Economic Policy Institute.Search in Google Scholar

Slavin, R. E. 1987. “Ability Grouping and Student Achievement in Elementary Schools: A Best-Evidence Synthesis.” Review of Educational Research 57 (3): 293–336. https://doi.org/10.3102/00346543057003293.Search in Google Scholar

Summers, A. A., and B. L. Wolfe. 1977. “Do Schools Make a Difference?” The American Economic Review 67 (4): 639–52.Search in Google Scholar

Wang, L. C. 2015. “All Work and No Play? The Effects of Ability Sorting on Students’ Non-school Inputs, Time Use, and Grade Anxiety.” Economics of Education Review 44: 29–41. https://doi.org/10.1016/j.econedurev.2014.10.008.Search in Google Scholar

Received: 2021-08-21
Revised: 2022-07-28
Accepted: 2022-08-31
Published Online: 2022-09-21

© 2022 Walter de Gruyter GmbH, Berlin/Boston

Downloaded on 27.12.2025 from https://www.degruyterbrill.com/document/doi/10.1515/bejeap-2021-0306/html
Scroll to top button