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

Author

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  • Ricardo Estrada

    (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

  • Jérémie Gignoux

    () (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

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

  • Ricardo Estrada & Jérémie Gignoux, 2017. "Benefits to elite schools and the expected returns to education: Evidence from Mexico City," Post-Print halshs-01513644, HAL.
  • Handle: RePEc:hal:journl:halshs-01513644
    DOI: 10.1016/j.euroecorev.2017.03.007
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01513644
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    References listed on IDEAS

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    1. Arcidiacono, Peter & Hotz, V. Joseph & Maurel, Arnaud & Romano, Teresa, 2014. "Recovering Ex Ante Returns and Preferences for Occupations using Subjective Expectations Data," IZA Discussion Papers 8549, Institute of Labor Economics (IZA).
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    Cited by:

    1. 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.
    2. repec:eee:chieco:v:55:y:2019:i:c:p:143-167 is not listed on IDEAS
    3. repec:eee:deveco:v:134:y:2018:i:c:p:372-391 is not listed on IDEAS
    4. repec:eee:ecoedu:v:63:y:2018:i:c:p:116-133 is not listed on IDEAS

    More about this item

    Keywords

    Elite high schools; Earnings expectations; Returns to education; College graduation;

    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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