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La rentabilidad de la educación superior en Chile: revisión de las bases de 30 años de políticas públicas

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  • Sergio, Urzúa

    () (University of Maryland, College Park)

Abstract

This paper analyzes the effect of attending vocational secondary education on labor market outcomes. Using administrative data on school enrollment, labor income, and employment, we identify the type of secondary school attended, as well as the number of months of formal employment and monthly income, ten years after graduating from high school. We supplement our data with historical records about the local availability of vocational secondary education, which we use to construct instrumental variables. Our results show that compared to conventional secondary schools, vocational secondary education increases formal employment - between 0.4 and 1.6 months of employment per year depending on its type. On the other hand, we document that graduates from vocational schools have, on average, lower wages than those of individuals with conventional high school degrees. However, we find significant heterogeneity by type of vocational education. For example, our results show that industry-oriented vocational schools over perform the other alternatives, including conventional secondary education. For this type, we estimate a return of 42,100 Chilean pesos per month. In contrast, students who attended technical high schools earn 54,610 Chilean pesos less than those obtaining high school degrees from conventional high schools.Overall, our findings provide new insights on the return to vocational education in Chile. They inform policy makers about the challenges and potential benefits associated with non-conventional high schools.

Suggested Citation

  • Sergio, Urzúa, 2012. "La rentabilidad de la educación superior en Chile: revisión de las bases de 30 años de políticas públicas," Estudios Públicos, Centro de Estudios Públicos, vol. 0(125), pages 2-52.
  • Handle: RePEc:cpt:journl:v::y:2012:i:125:p:2-52
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    File URL: https://www.cepchile.cl/la-rentabilidad-de-la-educacion-superior-en-chile-revision-de-las-bases/cep/2016-03-04/095900.html
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    File URL: https://www.cepchile.cl/cep/site/artic/20160304/asocfile/20160304095900/rev125_SUrzua.pdf
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    References listed on IDEAS

    as
    1. James J. Heckman & Sergio Urzua & Edward Vytlacil, 2006. "Understanding Instrumental Variables in Models with Essential Heterogeneity," The Review of Economics and Statistics, MIT Press, vol. 88(3), pages 389-432, August.
    2. David Newhouse & Daniel Suryadarma, 2011. "The Value of Vocational Education: High School Type and Labor Market Outcomes in Indonesia," World Bank Economic Review, World Bank Group, vol. 25(2), pages 296-322, May.
    3. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    4. Meer, Jonathan, 2007. "Evidence on the returns to secondary vocational education," Economics of Education Review, Elsevier, vol. 26(5), pages 559-573, October.
    5. Meghir, Costas & Rivkin, Steven, 2011. "Econometric Methods for Research in Education," Handbook of the Economics of Education, Elsevier.
    6. Bishop, John H. & Mane, Ferran, 2004. "The impacts of career-technical education on high school labor market success," Economics of Education Review, Elsevier, vol. 23(4), pages 381-402, August.
    7. Card, David, 2001. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, Econometric Society, vol. 69(5), pages 1127-1160, September.
    8. James J. Heckman & Paul A. LaFontaine, 2006. "Bias-Corrected Estimates of GED Returns," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 661-700, July.
    9. Soledad Arellano & Matías Braun-Llona, 1999. "Rentabilidad de la Educación Formal en Chile," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 36(107), pages 685-724.
    10. Shoshana Neuman & Adrian Ziderman, 1999. "Vocational Education in Israel: Wage Effects of the VocEd-Occupation Match," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 407-420.
    11. Trost, Robert P & Lee, Lung-Fei, 1984. "Technical Training and Earnings: A Polychotomous Choice Model with Selectivity," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 151-156, February.
    12. Claudio Sapelli., 2009. "Los Retornos a la Educación en Chile: Estimaciones por Corte Transversal y por Cohortes," Documentos de Trabajo 349, Instituto de Economia. Pontificia Universidad Católica de Chile..
    13. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier.
    14. Heckman, James J & Honore, Bo E, 1990. "The Empirical Content of the Roy Model," Econometrica, Econometric Society, vol. 58(5), pages 1121-1149, September.
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    16. Moenjak, Thammarak & Worswick, Christopher, 2003. "Vocational education in Thailand: a study of choice and returns," Economics of Education Review, Elsevier, vol. 22(1), pages 99-107, February.
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    More about this item

    Keywords

    returns to education; post-secondary education; inequality; social mobility;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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