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Benefits to Elite Schools and the Expected Returns to Education: Evidence from Mexico City

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  • Estrada, Ricardo
  • Gignoux, Jérémie

Abstract

We exploit data on the future earnings students at high school completion expect to receive with and without a college education, together with information on learning achievement and college outcomes, to study the benefits from admission into a system of elite public high schools in Mexico City. Using data for the centralized allocation of students into schools and an adapted regression discontinuity design strategy, we estimate that elite school admission increases the future earnings and returns students expect from a college education. These gains in earnings expectations seem to reflect improvement in actual earnings opportunities, as admission to this elite school system also enhances learning achievement and college graduation outcomes. This provides evidence of the earnings benefits from attending elite schools.

Suggested Citation

  • Estrada, Ricardo & Gignoux, Jérémie, 2017. "Benefits to Elite Schools and the Expected Returns to Education: Evidence from Mexico City," Research Department working papers 1017, CAF Development Bank Of Latinamerica.
  • Handle: RePEc:dbl:dblwop:1017
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    Cited by:

    1. Andrew Dustan & Alain de Janvry & Elisabeth Sadoulet, 2017. "Flourish or Fail?: The Risky Reward of Elite High School Admission in Mexico City," Journal of Human Resources, University of Wisconsin Press, vol. 52(3), pages 756-799.
    2. Avitabile,Ciro & Bobba,Matteo & Pariguana,Marco, 2015. "High school track choice and financial constraints : evidence from urban Mexico," Policy Research Working Paper Series 7427, The World Bank.
    3. Fanny Landaud & Son Thierry Ly & Éric Maurin, 2020. "Competitive Schools and the Gender Gap in the Choice of Field of Study," Journal of Human Resources, University of Wisconsin Press, vol. 55(1), pages 278-308.
    4. Margherita Fort & Andrea Ichino & Enrico Rettore & Giulio Zanella, 2022. "Multicutoff RD designs with observations located at each cutoff: problems and solutions," FBK-IRVAPP Working Papers 2022-01, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.
    5. Wu, Jia & Wei, Xiangdong & Zhang, Hongliang & Zhou, Xiang, 2019. "Elite schools, magnet classes, and academic performances: Regression-discontinuity evidence from China," China Economic Review, Elsevier, vol. 55(C), pages 143-167.
    6. 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.
    7. Maren M. Michaelsen & Paola Salardi, 2018. "Violence, Psychological Stress and Educational Performance during the “War on Drugs†in Mexico," HiCN Working Papers 262, Households in Conflict Network.
    8. Hans‐Peter Y. Qvist & Anders Holm & Martin D. Munk, 2021. "Demand and Supply Effects and Returns to College Education: Evidence from a Natural Experiment with Engineers in Denmark," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(2), pages 676-704, April.
    9. Michaelsen, Maren M. & Salardi, Paola, 2020. "Violence, psychological stress and educational performance during the “war on drugs” in Mexico," Journal of Development Economics, Elsevier, vol. 143(C).
    10. Dustan, Andrew & Ngo, Diana K.L., 2018. "Commuting to educational opportunity? School choice effects of mass transit expansion in Mexico City," Economics of Education Review, Elsevier, vol. 63(C), pages 116-133.
    11. 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.
    12. de Hoyos, Rafael & Estrada, Ricardo & Vargas, María José, 2021. "What do test scores really capture? Evidence from a large-scale student assessment in Mexico," World Development, Elsevier, vol. 146(C).
    13. Cabrera-Hernández, Francisco & Padilla-Romo, María & Peluffo, Cecilia, 2022. "Full-Time Schools and Educational Trajectories: Evidence from High-Stakes Exams," IZA Discussion Papers 15602, Institute of Labor Economics (IZA).
    14. Estrada, Ricardo, 2016. "The Effect of the Increasing Demand for Elite Schools on Stratification," Economics Working Papers MWP2016/02, European University Institute.
    15. Dustan, Andrew, 2018. "Family networks and school choice," Journal of Development Economics, Elsevier, vol. 134(C), pages 372-391.

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    More about this item

    Keywords

    Educación; Investigación socioeconómica; Trabajo y protección social;
    All these keywords.

    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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