Long-Term Effect of Private Education on Academic Achievement: Empirical Evidence from Panel Data

This study examines patterns in private tutoring choices and their impact on students’ academic performance, utilizing data from Waves 1 through 8 of the Korean Educational Longitudinal Study. Using explanatory variables such as current-year private tutoring characteristics, past tutoring expenditures, and prior academic achievement, we investigate both the short-term and long-term effects of private tutoring. The findings indicate that private tutoring has a more pronounced long-term effect. For example, its positive influence on college entrance exam scores is greater when tutoring occurs during the first or second year of high school, rather than in the final year. However, the direct impact of private tutoring on test score improvement is relatively modest, especially when compared to the effect of increased self-study time. Despite the limited direct academic gains, the decision to pursue private tutoring appears to be rational. Students and parents tend to select the most effective subjects at the most beneficial times from a long-term perspective. Furthermore, private tutoring indirectly enhances academic performance by encouraging more self-directed study.