HUMAN Capital Contracts in Chile: An excercise based on Income data on Chilean HE graduates

Felipe Lozano Rojas

MPRA Paper from University Library of Munich, Germany

Abstract: Given that a significant proportion of the Chilean education system is financed with household resources, we present human capital contracts (HCC) as an option for higher education financing for students facing financial constraints, but who could use their expected future income flows as collateral. We analyze the feasibility of HCC implementation in Chile over a set of college majors. We find that HCC can partially fund any college major in Chile and finance some majors completely, under certain conditions. Among the variables analyzed, those affecting most severely the contract pricing are initial wage level after graduation and graduation rate.

Keywords: Higher education returns; education financing; human capital contracts; human capital earning functions; income contingent schemes (search for similar items in EconPapers)
JEL-codes: C01 G13 I22 J24 J31 (search for similar items in EconPapers)
Date: 2011-07-21, Revised 2012-11-29
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Published in Latin American Jounal of Economics 2.49(2012): pp. 185-215

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Related works:
Journal Article: Human Capital Contracts in Chile: An Exercise Based on Income Data on chilean HE Graduates (2012)
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