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Returns to Higher Education: Vocational Education vs College

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  • Ana Maria Montoya
  • Carlos Noton
  • Alex Solis

Abstract

Students scoring above a given threshold in the college admission test are eligible for education loans in Chile. Given the random variation in college enrollment induced by this cutoff rule, we use a regression discontinuity design to identify the marginal returns of vocational education versus college education. We use individual-level data on educational background and labor history for the universe of test takers in 2007.We find no differences in earnings, employment, or participation in the formal sector. Given the more expensive tuition fees, more years of instruction, and lower probability of graduation, the students induced to enroll in college have suffered from high-income losses in the margin. Key words:

Suggested Citation

  • Ana Maria Montoya & Carlos Noton & Alex Solis, 2017. "Returns to Higher Education: Vocational Education vs College," Documentos de Trabajo 334, Centro de Economía Aplicada, Universidad de Chile.
    • Handle: RePEc:edj:ceauch:334
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    References listed on IDEAS

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    Cited by:

    1. Solis, Alex, 2019. "Measuring the Effect of Student Loans on the College Dropout Rate," Working Paper Series 2019:8, Uppsala University, Department of Economics.
    2. Yoshimichi Murakami & Tomokazu Nomura, 2023. "Decline in values of degrees and recent evolution of wage inequality: Evidence from Chile," Estudios de Economia, University of Chile, Department of Economics, vol. 50(1 Year 20), pages 55-132, June.
    3. Alonso Bucarey & Dante Contreras & Pablo Muñoz, 2018. "Labor Market Returns to Student Loans," Working Papers wp464, University of Chile, Department of Economics.

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