| Chapter 1: | Introduction: The Importance of External Examinations in Education |
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Costs and Consequences of a Corrupt Examination System
The process of academic selection is the linchpin of any education system and overall national cohesion. It represents the essence of the public good. If the system is corrupt, or widely believed to be corrupt, little else in the education system can be successful. Inattention to corruption in selection will place other aspects of a nation’s economic and social ambitions at risk.
If there is significant perceived corruption in education, higher education becomes a less effective means to acquire a high income. In Africa, the marginal effect of higher education on the probability of securing a high income falls by about 70% if the education system is perceived to be corrupt. In Western Europe, the marginal effect of higher education on the probability of gaining a high income falls by about 25% if accompanied by a perception of education corruption. Education corruption adversely affects the relative ability of higher education to keep people out of poverty. Within the Commonwealth of Independent States (CIS), corruption increases the probability that those with higher education become poor. When there is significant corruption, higher education is also a less effective means to reduce poverty.
When the education system is corrupt, private firms are forced to establish additional sorting mechanisms to determine the degree to which job candidates are competent. The use of these sorting devices imposes additional costs on firms and is related to the uncertainty attached to the quality of education attained by students. Students from highly corrupt universities are not considered for technical and professional private sector jobs and even some government jobs, and are screened out of jobs in foreign enterprises. If the best alternative for students from corrupt educational backgrounds is employment in the government sector, the loss of earnings is significant. If students from corrupt educational programs sort into government jobs with the potential for bribes, the private income costs of corruption are reduced, but the social costs remain.