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Benefits to elite schools and the formation of expected returns to education: Evidence from Mexico City

Author

Listed:
  • Estrada, Ricardo
  • Gignoux, Jérémie

Abstract

We study the effects of admission into elite public high schools in Mexico City on students' expected earnings, arguing these effects provide an indication of the value-added those schools produce. Using data for the centralized and exam-based allocation of students into schools and an adapted regression discontinuity design strategy, we find that admission substantially increases learning achievement, and also the future earnings and returns students expect from a college education, but no effect on the earnings expected with high school education alone. This suggests that students believe that the benefits from their elite education are complements to a college education.

Suggested Citation

  • Estrada, Ricardo & Gignoux, Jérémie, 2014. "Benefits to elite schools and the formation of expected returns to education: Evidence from Mexico City," CEPREMAP Working Papers (Docweb) 1407, CEPREMAP.
  • Handle: RePEc:cpm:docweb:1407
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    File URL: http://www.cepremap.fr/depot/docweb/docweb1407.pdf
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    Citations

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    Cited by:

    1. Landaud, Fanny & Ly, Son-Thierry & Maurin, Eric, 2016. "Competitive Schools and the Gender Gap in the Choice of Field of Study," CEPR Discussion Papers 11411, C.E.P.R. Discussion Papers.
    2. Maren M. Michaelsen & Paola Salardi, 2018. "Violence, Psychological Stress and Educational Performance during the "War on Drugs" in Mexico," Working Papers tecipa-595, University of Toronto, Department of Economics.
    3. repec:eee:deveco:v:134:y:2018:i:c:p:372-391 is not listed on IDEAS
    4. Eunsik Chang & María Padilla-Romo, 2019. "The Effects of Local Violent Crime on High-Stakes Tests," Working Papers 2019-03, University of Tennessee, Department of Economics.
    5. Estrada, Ricardo, 2016. "The Effect of the Increasing Demand for Elite Schools on Stratification," Economics Working Papers MWP2016/02, European University Institute.
    6. repec:eee:ecoedu:v:63:y:2018:i:c:p:116-133 is not listed on IDEAS
    7. repec:eee:chieco:v:55:y:2019:i:c:p:143-167 is not listed on IDEAS

    More about this item

    Keywords

    elite high schools; earnings expectations; returns to education; beliefs formation;

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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