Heterogeneous Economic Returns to Postsecondary Degrees: Evidence from Chile

Loreto Reyes, Jorge Rodríguez and Sergio Urzua

No 18817, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We analyze the economic returns to different postsecondary degrees in Chile. We posit a schooling decision model with unobserved ability, observed test scores and labor market outcomes. We benefit from administrative records to carry out our empirical strategy. Our results show positive average returns to postsecondary degrees, especially for five-year degrees. However, we also uncover a large fraction of individuals with realized negative net returns. Although psychic benefits of postsecondary education could rationalize this result, we argue this might also suggest that individuals lack information at the time schooling decisions are made. Finally, our findings illustrate the importance of allowing for heterogeneous treatment effects when making policy recommendations.

JEL-codes: C25 C38 I21 I24 J24 (search for similar items in EconPapers)
Date: 2013-02
New Economics Papers: this item is included in nep-lam and nep-lma
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Published as Jorge Rodríguez & Sergio Urzúa & Loreto Reyes, 2016. "Heterogeneous Economic Returns to Post-Secondary Degrees: Evidence from Chile," Journal of Human Resources, University of Wisconsin Press, vol. 51(2), pages 416-460.

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