External returns to higher education in Mexico 2000-2010

Mariana Pereira-López and Isidro Soloaga

Ensayos Revista de Economia, 2015, vol. XXXIV, issue 1, 1-34

Abstract: This paper estimates the external returns to higher education in Mexico using cross-sectional micro data from the 2000 and 2010 censuses’ samples. Results indicate that a one percentage point increase in the share of college graduates in Mexico increases the regression-adjusted average wages of a metropolitan area in more than six percent over a 10-year period. Analyzing whether these effects are mainly due to externalities or to supply movements along a downward sloping demand, it finds that part of the external returns to education is the result of externalities from direct or indirect interaction with these individuals.

Keywords: human capital; knowledge spillovers; education; wages; social returns to education (search for similar items in EconPapers)
JEL-codes: J0 O0 O4 R0 (search for similar items in EconPapers)
Date: 2015
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Working Paper: External Returns to Higher Education in Mexico 2000-2010 (2013)
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