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The Labor Market Effects of Eliminating University Tuition in Ecuador

Author

Listed:
  • Teresa Molina

    (University of Hawaii at Manoa)

  • Ivan Rivadeneyra

    (University of Hawaii at MÄ noa)

Abstract

It is both theoretically and empirically unclear whether a drastic nationwide reduction in the cost of education should significantly improve individual labor market outcomes. This paper estimates the labor market effects of a 2008 policy that eliminated tuition fees at public universities in Ecuador. We use a difference-in-difference strategy that exploits variation across cohorts differentially exposed to the policy, as well as geographic variation in access to public universities. We find that the tuition fee elimination significantly increased college participation, but did not improve income. The policy had modest effects on job type, shifting people out of more physical jobs. However, the bulk of the benefits of this fee elimination were enjoyed by individuals of higher socioeconomic status.

Suggested Citation

  • Teresa Molina & Ivan Rivadeneyra, 2019. "The Labor Market Effects of Eliminating University Tuition in Ecuador," Working Papers 201901, University of Hawaii at Manoa, Department of Economics.
    • Handle: RePEc:hai:wpaper:201901
    as

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    File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_19-01.pdf
    File Function: First version, 2019
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    References listed on IDEAS

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    More about this item

    Keywords

    higher education; tuition reduction; Ecuador;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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