Who Benefits from Tuition-Free, Top-Quality Universities? Evidence from Brazil

Suzanne Duryea, Rafael Ribas, Breno Sampaio, Gustavo R. Sampaio () and Giuseppe Trevisan ()
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Gustavo R. Sampaio: Universidade Federal de Pernambuco
Giuseppe Trevisan: Universidade Federal de Pernambuco

No 16192, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper investigates the long-term impact on earnings of attending a tuition-free, top-quality university in Brazil. We identify the causal effect through a sharp discontinuity in an admission process based on test scores. If admitted, low-income students are found to increase their earnings by 26% ten years later. However, admission has a small and insignificant effect on high-income students. The difference between income groups is not explained by educational attainment, program choice, or selection into better-paying jobs. The evidence suggests that most low-income applicants, if not admitted, still graduate from college but with much lower returns to education. High-income applicants who just miss the cutoff, however, can find other opportunities such that earnings trajectories are unchanged. Our results underscore the role of affordable higher education in promoting social mobility.

Keywords: school quality; affordability; college wage premium; income groups (search for similar items in EconPapers)
JEL-codes: H52 I23 I26 (search for similar items in EconPapers)
Pages: 59 pages
Date: 2023-05
New Economics Papers: this item is included in nep-dev, nep-edu, nep-lab, nep-lam and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published - published in: Economics of Education Review, 2023, 96, 102423

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Journal Article: Who benefits from tuition-free, top-quality universities? Evidence from Brazil (2023)
Working Paper: Who Benefits from Tuition-Free, Top-Quality Universities?: Evidence from Brazil (2023)
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