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The Returns to Private Education: Evidence from Mexico

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  • Binelli, Chiara
  • Rubio-Codina, Marta

Abstract

Despite the rapid expansion and increasing importance of private education in developing countries, little is known on the impact of studying in private schools on education and wages. This paper contributes to filling this gap by estimating the returns to private high schools in Mexico. We construct a unique data set that combines labour market outcomes and historical census data, and we exploit changes in the availability and size of public and private high schools across states and over time for identification. We find that attending a private high school does not affect school progression to college nor high school wages but it does positively affect wages conditional on college completion. Results are robust to a number of robustness tests on the validity of the instruments.

Suggested Citation

  • Binelli, Chiara & Rubio-Codina, Marta, 2013. "The Returns to Private Education: Evidence from Mexico," Economics of Education Review, Elsevier, vol. 36(C), pages 198-215.
    • Handle: RePEc:eee:ecoedu:v:36:y:2013:i:c:p:198-215
    DOI: 10.1016/j.econedurev.2013.06.004
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    Cited by:

    1. Binelli, Chiara & Menezes-Filho, Naercio, 2019. "Why Brazil fell behind in college education?," Economics of Education Review, Elsevier, vol. 72(C), pages 80-106.
    2. Mohd. Imran Khan & Pallavi Wats & Jannet Jacob Farida, 2023. "Gender Differences in Returns to Self-employment in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 66(1), pages 239-266, March.
    3. Binelli Chiara, 2015. "How the wage-education profile got more convex: evidence from Mexico," The B.E. Journal of Macroeconomics, De Gruyter, vol. 15(2), pages 509-560, July.
    4. Sonia Bhalotra & Manuel Fernández, 2021. "The rise in women's labour force participation in Mexico: Supply vs demand factors," WIDER Working Paper Series wp-2021-16, World Institute for Development Economic Research (UNU-WIDER).
    5. Ibarra-Olivo, J. Eduardo, 2021. "Foreign direct investment and youth educational outcomes in Mexican municipalities," Economics of Education Review, Elsevier, vol. 82(C).
    6. Binelli Chiara, 2015. "How the wage-education profile got more convex: evidence from Mexico," The B.E. Journal of Macroeconomics, De Gruyter, vol. 15(2), pages 509-560, July.
    7. IOAKIMIDIS Marilou & CHOUSTOULAKIS Emmanouil & PAPAKONSTANTINOU George, 2020. "Does Private High School Attendance Affect Preferred University Track Choice? A Research Perspective," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 15(3), pages 36-44, December.
    8. Humna Ahsan & Keith Blackburn, 2015. "Human capital and income distribution in a model of corruption," Centre for Growth and Business Cycle Research Discussion Paper Series 208, Economics, The University of Manchester.

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    More about this item

    Keywords

    Private and Public Schools; Returns to Education; Mexico;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation

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