The Return to Private Education: Evidence from School-to-Work Transitions

Dante Contreras, Jorge Rodriguez and Sergio Urzua

Working Papers from University of Chile, Department of Economics

Abstract: This paper investigates the labor market returns to high school types. We exploit comprehensive administrative data describing the school-to-work transition for the universe of Chilean students attending tenth grade in 2001. We discuss the role of self-selection into school types, pre-labor market abilities, firm characteristics, and present bounds for the parameters of interest. Attending private high schools has long-lasting e ects on earnings. Moreover, the long-term returns to school-level valueadded measures and monetary investments in education are larger among private-school students. Our findings provide new insights into the association of school choice and the inertia of income inequality.

Pages: 67 pages
Date: 2019-01
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