Labor Market Effects of School Ties: Evidence from Graduates of Leveled High Schools in South Korea

Before 1974, general high schools in Korea were stratified by a selective admission system. Starting from 1974, it was replaced by a leveling system in which students were randomly assigned to a school within a district. This paper examines whether the quality of school ties formed by senior graduates of the selective system affects contemporary outcomes of junior graduates randomly assigned to the same school under the leveling system. The quality of school ties does not strongly affect the average junior graduate's outcomes. In contrast, it benefits junior graduates who rank high in the outcome distribution.