Heterogeneous Economic Returns to Post-Secondary Degrees: Evidence from Chile

Jorge Rodríguez, Sergio Urzúa and Loreto Reyes
Authors registered in the RePEc Author Service: Jorge Rodriguez

Journal of Human Resources, 2016, vol. 51, issue 2, 416-460

Abstract: We analyze the economic returns to post-secondary degrees in Chile. We posit a schooling decision model with unobserved ability, degree-specific tuition costs, and earnings. We use administrative records to carry out our empirical analysis. Our results show positive average returns to post-secondary education, especially for five-year degrees. However, we also uncover significant heterogeneity. We document how unobserved characteristics (ability) determine the economic benefits of first- and second-best choices, even leading to negative returns to post-secondary degrees. Our findings illustrate the importance of allowing for heterogeneous treatment effects and individuals’ choices when examining the returns to education.

Date: 2016
Note: DOI: 10.3368/jhr.51.2.0213-5474R1
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Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:uwp:jhriss:v:51:y:2016:i:2:p:416-460

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