Abstract
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.
Original language | English |
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Pages (from-to) | 416-460 |
Number of pages | 45 |
Journal | Journal of Human Resources |
Volume | 51 |
Issue number | 2 |
DOIs | |
State | Published - 2013 |
Bibliographical note
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