Paying (and Paving) my way: Extra-class participation and rent extraction
研究越南教师向学生提供有偿课外辅导的现象，发现参加课外辅导的学生校内成绩更高但标准化考试成绩未提升，表明教师利用评分自主权谋取私利。
• Extra classes increase pupils’ grades at school. • Extra classes do not lead to better performance on standardized tests. • Grade inflation and lack of effect on underlying skills suggest bad teacher incentives. • Extra-class attendees gain academic self-confidence over the school year. • Taking extra classes in primary school increases enrollment in secondary school. Extra classes, or private tutoring offered by schoolteachers to their pupils, are a widespread phenomenon, particularly in developing countries. This educational arrangement might leave room for distorted incentives. Using data from Vietnam, I find that teachers grant higher school grades to pupils attending extra classes, but extra-class attendance does not yield higher scores on 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 higher in institutionally underdeveloped settings. Attending extra classes also generates a gap in pupils’ self-concept. These findings provide relevant policy implications to align this informal sector with the country's education system.