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Signaling or better human capital: Evidence from Colombia

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  • Barrera-Osorio, Felipe
  • Bayona-Rodríguez, Hernando

Abstract

We use data from the admissions process from a highly selective private university in Colombia to analyze the impact of prestigious university attendance on the education trajectory and labor market outcomes of individuals. The university´s selection process allows the use of a regression discontinuity design. We estimate both intent-to-treatment (offer admissions) and treatment-on-the-treated (enrollment) effects. The results show positive effects of offering admission to the prestigious university on the probability of enrollment, 13.8 percentage point (pp), 1.3 pp increase in academic credits a student need to repeat, and increment in 7 pp in probability of graduation. Despite no significant effects on the standardized university exit exam, we found positive effects on the probability of employment and earnings, 7.4 and 4.6 pp respectively. These results suggest that prestigious universities are more effective source of signaling in the labor market, but they are not more effective than other universities in developing human capital.

Suggested Citation

  • Barrera-Osorio, Felipe & Bayona-Rodríguez, Hernando, 2019. "Signaling or better human capital: Evidence from Colombia," Economics of Education Review, Elsevier, vol. 70(C), pages 20-34.
    • Handle: RePEc:eee:ecoedu:v:70:y:2019:i:c:p:20-34
    DOI: 10.1016/j.econedurev.2019.02.006
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    Citations

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    Cited by:

    1. Laura Ehrmantraut & Pia Pinger & Renske Stans, 2020. "The Expected (Signaling) Value of Higher Education," Working Papers 2020-070, Human Capital and Economic Opportunity Working Group.
    2. Marina Bassi & Lelys Dinarte-Diaz & Maria Marta Ferreyra & Sergio Urzua, 2023. "What Makes a Program Good? Evidence from Short-Cycle Higher Education Programs in Five Developing Countries," CESifo Working Paper Series 10255, CESifo.
    3. Choudhury, Prithwiraj & Ganguli, Ina & Gaulé, Patrick, 2023. "Top Talent, Elite Colleges, and Migration: Evidence from the Indian Institutes of Technology," Journal of Development Economics, Elsevier, vol. 164(C).
    4. Londoño-Vélez, Juliana, 2022. "The impact of diversity on perceptions of income distribution and preferences for redistribution," Journal of Public Economics, Elsevier, vol. 214(C).
    5. Adriana Camacho & Catherine Rodríguez & Fabio Sanchez, 2022. "Does financial aid for top international graduate programs boost education and earnings? Evidence from Colombia," Documentos CEDE 20124, Universidad de los Andes, Facultad de Economía, CEDE.
    6. Dinarte Diaz,Lelys Ileana & Ferreyra,Maria Marta & Urzua,Sergio & Bassi,Marina, 2021. "What Makes a Program Good ? Evidence from Short-Cycle Higher Education Programs in LatinAmerica and the Caribbean," Policy Research Working Paper Series 9722, The World Bank.
    7. Ferreyra,Maria Marta & Galindo,Camila & Urzúa,Sergio, 2021. "Labor Market Effects of Short-Cycle Higher Education Programs : Lessons from Colombia," Policy Research Working Paper Series 9717, The World Bank.
    8. Dinarte-Diaz, Lelys & Ferreyra, Maria Marta & Urzua, Sergio & Bassi, Marina, 2023. "What makes a program good? Evidence from short-cycle higher education programs in five developing countries," World Development, Elsevier, vol. 169(C).
    9. Eriko Naiki & Yuta Ogane, 2022. "Human capital effects on fundraising for necessity- and opportunity-based entrepreneurs," Small Business Economics, Springer, vol. 59(2), pages 721-741, August.
    10. Juliana Londoño-Vélez, 2022. "The Impact of Diversity on Perceptions of Income Distribution and Preferences for Redistribution," NBER Working Papers 30386, National Bureau of Economic Research, Inc.
    11. Leonardo Fabio Morales & Christian Posso & Luz A. Flórez, 2021. "Heterogeneity in the Returns to Tertiary Education for the Disadvantage Youth: Quality vs. Quantity Analysis," Borradores de Economia 1150, Banco de la Republica de Colombia.

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