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How large is the missing middle and what would it cost to fund?

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  • Neil Garrod
  • Angelique Wildschut

Abstract

The concept of the missing middle has gained currency within South African post-school education and training (PSET) discourse in recent years. The term has been defined as representing those too wealthy to benefit from National Student Financial Aid Scheme (NSFAS) funding, but who struggle to afford higher education. The missing middle currently refers to those students from households with incomes between R350 000 and R600 000. Whilst some 6% of South African households have incomes between R350 000 and R600 000, differing participation rates and average household income levels, amongst students from different race groups result in an estimated size of the missing middle in 2019 of 343 000 students out of a total PSET population of 1.4 m. The cost of funding full bursaries for all these students at 2019 prices is estimated at R19.2 bn. If a sliding scale of support is introduced, the total cost falls to R11.4 bn.

Suggested Citation

  • Neil Garrod & Angelique Wildschut, 2021. "How large is the missing middle and what would it cost to fund?," Development Southern Africa, Taylor & Francis Journals, vol. 38(3), pages 484-491, May.
    • Handle: RePEc:taf:deveza:v:38:y:2021:i:3:p:484-491
    DOI: 10.1080/0376835X.2020.1796594
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    Cited by:

    1. Albert Whata & Charles Chimedza, 2021. "Credibility of Causal Estimates from Regression Discontinuity Designs with Multiple Assignment Variables," Stats, MDPI, vol. 4(4), pages 1-23, November.

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