Labor Market Effects of Participation in Shadow Education: Evidence from South Korea

I study the effect of participation in shadow education (private tutoring) in the eleventh grade on the duration of job search for the first job after one's completing education. I find that participation in shadow education increases significantly the probability of exit from job search to employment of high quality which offers a regular staff position and a job that requires qualification above or commensurate with an individual's education level and has been desired by the individual. The effect of participation in shadow education on employment is particularly strong and large for poor academic performers in school. I also find that participation in shadow education in high school increases the educational attainment and the probability of getting better grade in post-secondary education for poor academic performers.This work was supported by the research fund of Hanyang University (HY-2012-G). I thank Chanhui Kang for providing me with the data of the average CSAT scores of universities. I also thank two anonymous referees for their helpful comments and suggestions. Any remaining error, if any, is mine