What Cause the College Entrance Gap in Korea?: Short-term financial constraints vs. long-term constraints

Abstract

This paper empirically investigates the dynamics of the poverty-higher education gap in Korea. Poverty may lead to a gap in access to higher education through two channels: the short-term inability to pay college tuition and fees and long-term disadvantages arising from one's environment that impede the development of academic ability. A regression analysis based on data from the Korean Education and Employment Panel suggests that it is long-term disadvantages that plays a dominant role in the dynamics of this gap. We also replicate a study carried out by Carneiro and Heckman, who have addressed a similar question in the US. Again, the results confirm that the crucial constraint is the long-term accumulation of disadvantages arising mainly from family background, not the short-term constraint. These findings suggest that policies designed to alleviate short-term financial constraints, such as tuition reduction, will be less effective in reducing the gap in accessing four-year college in Korea than policies involving early intervention in children’s development.