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

• Autores: Jorge Rodríguez, Sergio Urzúa, Loreto Reyes
• Localización: Journal of human resources, ISSN 0022-166X, Vol. 51, Nº 2, 2016, págs. 416-460
• Idioma: inglés
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• Dialnet Métricas: 1 Cita
• Resumen

  • 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.