HUMAN Capital Contracts in Chile : An excercise based on Income data on Chilean HE graduates
AbstractGiven that a significant proportion of the Chilean education system is financed with household resources, we present human capital contracts (HCC) as an option for higher education financing for students facing financial constraints, but who could use their expected future income flows as collateral. We analyze the feasibility of HCC implementation in Chile over a set of college majors. We find that HCC can partially fund any college major in Chile and finance some majors completely, under certain conditions. Among the variables analyzed, those affecting most severely the contract pricing are initial wage level after graduation and graduation rate.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 42982.
Date of creation: 21 Jul 2011
Date of revision: 29 Nov 2012
Publication status: Published in Latin American Jounal of Economics 2.49(2012): pp. 185-215
Higher education returns; education financing; human capital contracts; human capital earning functions; income contingent schemes;
Other versions of this item:
- Felipe Andrés Lozano-Rojas, 2012. "Human Capital Contracts in Chile: An Exercise Based on Income Data on chilean HE Graduates," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 49(2), pages 185-215, November.
- 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
- G13 - Financial Economics - - General Financial Markets - - - Contingent Pricing; Futures Pricing
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
- C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
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