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The returns to private education: evidence from Mexico

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  • Chiara Binelli

    (Institute for Fiscal Studies and University of Southampton)

  • Marta Rubio Codina

    (Institute for Fiscal Studies and Institute for Fiscal Studies)

Abstract

Despite the rapid expansion and increasing importance of private education in developing countries, very little is known about the impact of studying in private schools on educational attainment and wages. This paper contributes to fi?lling this gap by estimating the returns to private high schools in Mexico. We construct a unique dataset that combines labor market outcomes and historical school census data, and we exploit changes in the availability and size of public and private high schools across states and over time for identi?cation. We ?nd substantial evidence of a positive effect of studying in a private high school on wages after college graduation, and we discuss alternative mechanisms that can explain this ?finding.

Suggested Citation

  • Chiara Binelli & Marta Rubio Codina, 2012. "The returns to private education: evidence from Mexico," IFS Working Papers W12/08, Institute for Fiscal Studies.
    • Handle: RePEc:ifs:ifsewp:12/08
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    References listed on IDEAS

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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. Ibarra-Olivo, J. Eduardo, 2021. "Foreign direct investment and youth educational outcomes in Mexican municipalities," Economics of Education Review, Elsevier, vol. 82(C).
    4. 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.
    5. 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.
    6. 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).
    7. 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

    The Market Returns to Private High Schools: Evidence from Mexico;

    JEL classification:

    • 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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