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Evaluating An Alternative To Finance Higher Education: Human Capital Contracts In Colombia


  • Felipe Lozano R.



RESUMEN: Se presenta un ejercicio para la valuación de Contratos de Capital Humano (CCH), siguiendo a Palacios (2004), en el cual se utilizan datos del Observatorio Laboral para la Educación y su Encuesta de Seguimiento a Graduados–2007. El análisis se hace a través de un modelo Minceriano y uno de Splines para encontrar los pronósticos determinísticos del ingreso. Se encuentra que los retornos a la educación superior proveen un incentivo para la implementación de CCHs para financiar completamente los programas de las universidades públicas y parcialmente en las universidades privadas. Financiar los programas de las universidades privadas requiere más ayudas para hacer los contratos rentables para los inversionistas y atractivos para los estudiantes. ABSTRACT: An exercise for Human Capital Contracts (HCCs) valuation is developed, following Palacios (2004), with estimations of future income created from data collected by the Labor Observatory for Education and its Following Graduates Survey-2007. The analysis is made through Mincerian and Splines models to derive income deterministic forecasts. The results show that returns to higher education provide an economic incentive for the implementati on of HCCs to totally finance public university programs, and partially finance private university programs. Total financing of the latter still depends on additional aid to make the contracts both profitable for investors and attractive for students.

Suggested Citation

  • Felipe Lozano R., 2009. "Evaluating An Alternative To Finance Higher Education: Human Capital Contracts In Colombia," Revista de Economía del Rosario, Universidad del Rosario, November.
  • Handle: RePEc:col:000151:008801

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    References listed on IDEAS

    1. William Easterly, 2002. "The Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262550423.
    2. James J. Heckman & Lance J. Lochner & Petra E. Todd, 2008. "Earnings Functions and Rates of Return," Journal of Human Capital, University of Chicago Press, vol. 2(1), pages 1-31.
    3. Carlos Felipe Prada, 2006. "¿Es rentable la decisión de estudiar en Colombia?," Revista ESPE - Ensayos Sobre Política Económica, Banco de la República - ESPE, vol. 24(51), pages 226-323, June.
    4. Andrés Felipe García-Suaza & Juan Carlos Guataquí & José Alberto Guerra & Darío Maldonado, 2014. "Beyond the Mincer equation: the internal rate of return to higher education in Colombia," Education Economics, Taylor & Francis Journals, vol. 22(3), pages 328-344, June.
    5. Justin Yifu Lin, 2007. "Development and Transition : Idea, Strategy, and Viability," Development Economics Working Papers 22709, East Asian Bureau of Economic Research.
    6. Chapman, Bruce, 2006. "Income Contingent Loans for Higher Education: International Reforms," Handbook of the Economics of Education, Elsevier.
    7. Sandrine Rospabé & R.C. Daniels, 2005. "Estimating an earnings function from coarsened data by an interval censored regression procedure," Post-Print halshs-00098979, HAL.
    8. Nohora Y. Forero Ramírez & Manuel Ramírez Gómez, 2008. "Determinantes de los ingresos laborales de los graduados universitarios durante el período 2001-2004," Documentos de Trabajo 004591, Universidad del Rosario.
    9. Reza Daniels & Sandrine Rospabé, 2005. "Estimating an Earnings Function from Coarsened Data by an Interval Censored Regression Procedure," Working Papers 05091, University of Cape Town, Development Policy Research Unit.
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    More about this item


    Retornos a la Educación Superior; Financiación Educación; Contratos de Capital Humano; Modelos de Splines Lineales; Regresión Intervalo.;

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • 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


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