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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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    1. Adrienne M. Lucas & Isaac M. Mbiti, 2014. "Effects of School Quality on Student Achievement: Discontinuity Evidence from Kenya," American Economic Journal: Applied Economics, American Economic Association, vol. 6(3), pages 234-263, July.
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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. repec:eee:chieco:v:55:y:2019:i:c:p:143-167 is not listed on IDEAS
    3. 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.
    4. repec:eee:ecoedu:v:63:y:2018:i:c:p:116-133 is not listed on IDEAS
    5. 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.
    6. Estrada, Ricardo, 2016. "The Effect of the Increasing Demand for Elite Schools on Stratification," Economics Working Papers MWP2016/02, European University Institute.
    7. repec:eee:deveco:v:134:y:2018:i:c:p:372-391 is not listed on IDEAS

    More about this item

    Keywords

    Educación; Investigación socioeconómica; Trabajo y protección social;

    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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