Paper short abstract:

By investigating the effectiveness of extra class—a type of afterschool private tutoring offered by schoolteachers to their own pupils, the paper touches on the issues of transparency and equality within the education system of Vietnam

Paper long abstract:

Extra class, or private tutoring offered by schoolteachers to their own pupils, is a widespread phenomenon in many developing countries. This paper examines the effectiveness of extra class on pupils’ learning at primary schools in Vietnam. Using a school survey of 3,284 pupils in Grade 5, I distinguish between extra-class effects on teacher grades and on standardized achievement tests. I find that teachers grant higher school grades to pupils attending extra class, but extra class attendance does not yield higher scores at standardized achievement tests. I interpret these results as evidence of opportunistic behavior, whereby teachers exploit their arbitrariness in awarding grades, which count for secondary school admissions, to extract rents. The extent of grade inflation is larger among children from low SES, half-day schools or low-qualification teachers, i.e. disadvantaged settings with fewer monitoring mechanisms against (bad) teacher incentives. Attending extra class also generates a gap in pupils’ self-image, suggesting teachers discriminate based on extra-class status of pupils. The lack of productivity of extra class on human capital implies that parents pay for extra class mainly for passing examination and earning qualification. Pupils from disadvantaged background will likely suffer more in this race. These findings suggest extra class comes at the costs of both efficiency and equity in education. This paper contributes to the literature on corruption and education quality and the growing literature on shadow education.