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Are returns to education on the decline in Venezuela and does Mission Sucre have a role to play?

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  • Gonzalez, Naihobe
  • Oyelere, Ruth Uwaifo

Abstract

Anecdotal evidence points to a falling standard of living for the educated in Venezuela. During this same period, President Hugo Chávez implemented several education reforms. We focus on a major university education reform known as Mission Sucre and its potential impact on returns to university education. First, we show that returns to education decreased significantly in Venezuela from 2002 to 2008. Subsequently, we explore the impact of the program on non-program participants and provide evidence that a substantial part of the falling returns at the tertiary level can be linked to Mission Sucre. Our results suggest that the reform created a negative externality on students who did not participate in the program, leading to a 2.7 percentage point decline in returns to university education for non-Mission Sucre students in the 23–28 age cohort.

Suggested Citation

  • Gonzalez, Naihobe & Oyelere, Ruth Uwaifo, 2011. "Are returns to education on the decline in Venezuela and does Mission Sucre have a role to play?," Economics of Education Review, Elsevier, vol. 30(6), pages 1348-1369.
  • Handle: RePEc:eee:ecoedu:v:30:y:2011:i:6:p:1348-1369 DOI: 10.1016/j.econedurev.2011.07.007
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    References listed on IDEAS

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    4. Uwaifo Oyelere, Ruth, 2008. "Understanding Low Average Returns to Education in Africa: The Role of Heterogeneity across Education Levels and the Importance of Political and Economic Reforms," IZA Discussion Papers 3766, Institute for the Study of Labor (IZA).
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    Cited by:

    1. Uwaifo Oyelere, Ruth, 2015. ""A Flop or a Success?" An Evaluation of the Welfare Impacts of the 6-3-3-4 Education System in Nigeria," IZA Discussion Papers 9131, Institute for the Study of Labor (IZA).
    2. repec:ilo:ilowps:487581 is not listed on IDEAS
    3. Sparreboom, Theo. & Staneva, Anita., 2015. "Structural change, employment and education in Mozambique," ILO Working Papers 994875813402676, International Labour Organization.

    More about this item

    Keywords

    Human capital; Economic impact; Rate of return; Educational economics;

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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