korea s experience in human capital policies...introduce “job-first, diploma-later” career path...
TRANSCRIPT
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Korea’s Experience in Human Capital Policies
Ju-Ho LeeKDI School of Public Policy and Management
Human Capital Policies (I):
Korea’s Education Expansion
and bubble
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I. The World’s Fastest Educational Expansion
II. Quality Problems of Colleges and Schools
III. Formation of Education Bubbles
IV. Labor Market Consequences of Education Bubbles
Outline
Korea’s Rapid Educational Expansion
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① Educational Attainment: • Average Years of Schooling
② Educational Achievement: • International Achievement Tests
③ R&D Manpower• Number of Researchers
Average Years of Schooling (15-64 old) in Korea, Japan, USA, and China
Source: Barro, R. & Lee, J. (2010). A New Data Set of Educational Attainment in the World, 1950-2010, NBER WP 15902http://www.barrolee.com/ (2013.4. 12 retrieved)
0.0
3.0
6.0
9.0
12.0
15.0
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
K 15-64 J 15-64
USA 15-64 China 15-64
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Source: Barro, R. & Lee, J. (2010). A New Data Set of Educational Attainment in the World, 1950-2010,NBER WP 15902 http://www.barrolee.com/ (2013.4. 12 retrieved)
Average years of schooling (15-34 old) in Korea, Japan, USA, and China
0.0
3.0
6.0
9.0
12.0
15.0
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Korea 15‐34 Japan 15‐34
USA 15‐34 China 15‐34
Average Scores of Reading, Math and Science in PISA
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Number of Researchers (FTE) per Million Inhabitants
0
1000
2000
3000
4000
5000
6000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Korea Japan USA UK Germany France China
Source: UNESCO
Quality Problems in Korea’s Education
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① Low Academic Ranking of Research Universities
② Strong Vertical Differentiation of Universities with respect to KSAT Scores of Entering Students
- Weak Horizontal Differentiation of Universities
③ Focus on Test Scores in Schools at the expense of Creativity and Character Skills
Academic Ranking of World Universities (2013)
Alumni: Alumni of an institution winning Nobel Prizes and Fields Medals (10%)Award: Staff of an institution winning Nobel Prizes and Fields Medals (20%)HiCi: Highly cited researchers in 21 broad subject categories (20%)N&S: Papers published in Nature and Science* (20%)PUB: Papers indexed in SCIE and SSCI (20%)PCP: Per capita academic performance of an institution (10%)
0
50
100Alumni
Award
HiCi
N&S
PUB
PCP
Harvard University(1)
The University of Tokyo(21)
SNU(101-150)
Peking University(151-200)
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Share of Papers and Citations by Countries
Source: Web of scienceNote: In full counting method
Vertical Differentiation among Universities : Education and Research Indicators (2013)
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• According to PISA, Korean students study Math for 9.32 hours per week, much longer than OECD average(6.83), Finland(5.02)
– Korean students study Math at after school programs including private tutoring for 2.28 hours per week, much longer than OECD average(1.07), Finland(0.37)
– Korean students study Math autonomously including homework for 2.31 hours per week, much longer than Finland(1.20 hours)
Education Bubble
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• We call education bubble as a phenomenon of steady increases in spending on educational investment that may not result in the effective increase in human capital
• Such phenomenon may involve
- Mushrooming of private tutoring to enter prestigious universities
- Rapid increase in students among low-quality universities
Private spending on education keeps increasing despite low rate of
return due to:
• Social psychological factors that put high values on the academic degrees
• Strong vertical differentiation in education
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Institutional changes in education to enhance its quality and diversity occur
much slowly than the quantitative expansion
• Educational institutions fail to respond flexibly to the rapid increases in the demand for education
• Political economic factors that make education reforms much more difficult
than economic reforms
• Over-education
- Quantity of Education
- Labor Market Mismatches
• Education Bubbles
- Quality of Education
- Vertical Differentiation in Education
- Continuous Increase in Education Expenditure
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• Financial Bubbles: - Prices in a financial bubble can fluctuate erratically and are vulnerable to a sudden burst
• Education Bubbles- Increases in education expenditure are more persistent for a longer period
- More long-run adverse consequences on inequality and economic growth
Share of new graduates from high schools who enter universities had surged from 33.3% in 1990 to 83.9% in 2008
Share of new graduates from vocational high schools who get jobs had plummeted from 80.1% in 1991 to 16.8% in 2009
Sluggish quality improvement and strengthened vertical differentiation in universities
Employees of private tutoring institution increased from 69,000 to 317,000 which is equivalent to 77% of total number of school teachers
11
22
33
44
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0.0
20.0
40.0
60.0
80.0
100.0
1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
generalallvocational
Percentage of New High School Graduates who Enter Colleges (Advancement Rates)
Note: those enlisted were excluded from graduates. . Source: Statistical Yearbook of Education.
0.0
20.0
40.0
60.0
80.0
100.0
1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
vocationalallgeneral
Percentage of New High Schools Graduates Employed
Note: those enlisted were excluded from graduates. . Source: Statistical Yearbook of Education.
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Percentage Change in Enrollment from 2000 by Decile Groups of Colleges
Source: National Business Survey by Statistics Korea, and Educational Yearly StatisticsNote: Teachers in elementary and secondary schools
Number of institutions and Employees in Private Tutoring Business
-
50
100
150
200
250
300
350
400
450
-
10
20
30
40
50
60
70
80
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
no. o
f emplo
yees or teach
ers
(x1000)
no. of
inst
ituio
ns
(x1000)
No. of institutions in private tutoring No. of employees in private tutoring No. of Teachers in Schools
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Korean Labor Market Analysis
Despite the massive increases in the graduates of higher education
institutions:
1•Wage growth has slowed down since mid 1990s (the rapid expansion period)
2•Overall wage inequality has risen
3•College Premium increased but heterogeneously among the college graduates
4•Within-college inequality was the main driver of the increasing inequality
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Compositional Change of the Workforce Toward Higher Education0
.2.4
.6
1980 1985 1990 1995 2000 2005 2010Year
MS HS 2Y-C 4Y-C
Growth and Inequality of Korean Wage
1997 2008
.25
.3.35
.4
Gini
1313
.514
14.5
Log W
age
1980 1985 1990 1995 2000 2005 2010Year
Mean Gini
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4-Year College Premium by Wage Decile Groups-.5
0.5
11.5
2
Rate of R
etur
n to C
ollege
Edu
catio
n
1980 1985 1990 1995 2000 2005 2010Year
1st Dec. 2nd Dec. 5th Dec. 10th Dec. Top 5% Top 1%
Share of Wage-deficient Young 4-year College Workers
0.0
5.1
.15
.2.2
5
1980 1985 1990 1995 2000 2005 2010Year
mean median
Among College Workers (Age<=34)
0.0
2.0
4.0
6.0
8.1
1990 1995 2000 2005 2010Year
mean median
Among Workforce (Age<=34)
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• Human capital is an engine of economic growth, and human capital policy is major tool to combat inequality
• However quantitative expansion of education alone might not necessarily lead to the human capital accumulation
• Policy makers around the world should focus on education reforms to enhance the quality of education to cope with the negative consequences of education bubble such as mushrooming of private tutoring to enter prestigious universities and rapid increase in students among low-quality universities
Human Capital Policies (II):
Korea’s Reforms to
Diversify Education
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I. Education diversification as a goal
II. Specific reform agendas for implementing diversification
III. Reform strategies for implementing diversification
Outline
Educational Diversification as a Goal
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Distribution of Schools and Colleges before and after Education Diversification
Distribution of Schools and Colleges before and after Education Equalization
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Education Diversification versus Education Equalization
Misguidance of the International Comparisons on Education Reforms
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Reform Agendas
Reinforce Vocational Education
Meister high schools initiatives
Strengthen career guidance(employ new 4,500 career counseling teachers)
Introduce “Job-first, Diploma-Later” career pathfor vocational high school graduates
Encourage changes in 350 specialized vocational high Schools
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Teaching and Assessment for Creativity & Character Skills
Introduce Admission Officer Systems for universities
Introduce Admission System for Self-directed Learning forspecial-purpose high schools
Revitalize character education to combat school violence(school sports clubs, student orchestra, social and emotionallearning)
Introduce smart education (digitalize textbooks)
Support Universities that Focus on Teaching and Cooperation with Industry
Introduce supporting system for universities that teach well- University Educational Capacity Enhancement Program (UECEP)- Advancement for College Education (ACE)
Introduce supporting system to link universities and companies- Leaders in Industry-University Cooperation (LINC)- 2,000 I-U Partnership Professors- Contract Majors- World Class Colleges (WCC))
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Strengthen the Autonomy of Schools
High School Diversification 300 Initiatives - autonomous private high schools- boarding high schools- autonomous public high schools
Introduce a system to recruit principals through open competition
Strengthen the Accountability of Schools
Nation-wide information disclosure on schools
Pulling students out of underachievement based on nation-wide assessment of all students
Evaluate teachers by students, parents, and colleagues
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3. Enhance the Quality of Research Universities
Governance reforms for national universities- corporatize SNU- abolish direct election system of presidents of national universities
World Class University (WCU)- invite 340 foreign scholars to 30 domestic universities
Double government support for research of university professors - from 16% (2008) to 32% (2013)
Establish International Science Business Belt- Institute of Basic Science (IBS)- on-campus research centers at KAIST, GIST, DGIST, and POSTECH- Heavy-ion Accelerator
Restructuring Universities
Establish data-based framework for restructuring universities
Set up University Restructuring Committee (URC)
Announce annual list of universities that are subject to limited financial support, limited subsidies for student loans,even to be closed down
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Reduce the Burden of Private Tutoring
Expand After-School Class
Encourage local communities and industries foractive educational donation
Education Broadcasting System (EBS) providesquality CSAT courses
Regulate through price ceiling and limited hours of late-night private instruction
“Half Burden of Tuition” Initiatives
Launch National Scholarship Program through Korea Student Aid Foundation (KOSAF)
Introduce Income Contingent Loan
Incentivize universities to reduce student’s burdenof tuition
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Reform Strategies
Crisis-Management Strategies
Building on earlier failed reform efforts Obtaining an electoral mandate for education reforms Pursuing evidence-based reforms with information disclosure
and solid research Engaging teachers by mediating conflicting interests among
teachers Transforming small crises into significant reform opportunities
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Opening-Up Strategies
Open to industry
Open to parents
Open to new players
Open to countries abroad
Open to other ministries through “whole-of-government” approach
• Balanced consideration of cognitive and non-cognitive skills is crucial in setting the goal of education diversification reform
• Reform agenda for education diversification include diverse policies designed to reinforce horizontal differentiation
• Major strategies to overcome for education diversification reform are opening-up strategies and crisis management strategies
• Hopefully, goals, agendas, and strategies of education diversification reform discussed during the seminar will contribute to the formation of a more balanced and wide-ranged consensus on education reform
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