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The Schooling and Labor Market Effects of Eliminating University Tuition in Ecuador

Teresa Molina and Ivan Rivadeneyra ()
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Ivan Rivadeneyra: University of Hawaii at Manoa

No 13638, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper estimates the effects of a 2008 policy that eliminated tuition fees at public universities in Ecuador. We use a difference-in-differences strategy that exploits variation across cohorts differentially exposed to the policy, as well as geographic variation in access to public universities. We find that the tuition fee elimination significantly increased college participation and affected occupation choice, shifting people into higher-skilled jobs. We detect no statistically significant effects on income. Overall, the bulk of the benefits of this fee elimination were enjoyed by individuals of higher socioeconomic status.

Keywords: higher education; tuition reduction; Ecuador (search for similar items in EconPapers)
JEL-codes: I23 I24 I28 O15 (search for similar items in EconPapers)
Pages: 59 pages
Date: 2020-08
New Economics Papers: this item is included in nep-dev, nep-edu and nep-lab
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