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

Author

Listed:
  • Ricardo Estrada

    (PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Jérémie Gignoux

    (PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

We study the effects of admission into elite public high schools in Mexico City on students' expected earnings, arguing these effects provide an indication of the value-added those schools produce. Using data for the centralized and exam-based allocation of students into schools and an adapted regression discontinuity design strategy, we find that admission substantially increases learning achievement, and also the future earnings and returns students expect from a college education, but no effect on the earnings expected with high school education alone. This suggests that students believe that the benefits from their elite education are complements to a college education.

Suggested Citation

  • Ricardo Estrada & Jérémie Gignoux, 2014. "Benefits to elite schools and the formation of expected returns to education: Evidence from Mexico City," Working Papers halshs-00951763, HAL.
    • Handle: RePEc:hal:wpaper:halshs-00951763
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00951763v1
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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. 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.
    3. 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.
    4. 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.
    5. Dustan, Andrew, 2018. "Family networks and school choice," Journal of Development Economics, Elsevier, vol. 134(C), pages 372-391.
    6. 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.
    7. 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).
    8. Estrada, Ricardo, 2016. "The Effect of the Increasing Demand for Elite Schools on Stratification," Economics Working Papers MWP2016/02, European University Institute.

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    Keywords

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    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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