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Amenities and individual heterogeneity in the return to schooling

Author

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  • Victor Iturra

    (Universidad de Talca)

  • Mauricio Sarrias

    (Universidad de Talca)

Abstract

We analyze the role played by amenities in the mean and variance of the return of schooling’s distribution. To do so, we employ a random parameter approach to consider the whole distribution of schooling, and testing how much of the unobserved heterogeneity is reduced when amenities interact with schooling. Using Chilean data sets, the results indicate that amenities play a significant role on the distribution of individuals’ return to schooling by both shifting the average return and reducing the unobserved heterogeneity across workers.

Suggested Citation

  • Victor Iturra & Mauricio Sarrias, 2023. "Amenities and individual heterogeneity in the return to schooling," Letters in Spatial and Resource Sciences, Springer, vol. 16(1), pages 1-15, December.
    • Handle: RePEc:spr:lsprsc:v:16:y:2023:i:1:d:10.1007_s12076-022-00322-8
    DOI: 10.1007/s12076-022-00322-8
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    More about this item

    Keywords

    Return to schooling; Amenities; Heterogeneity; Random parameters;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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