The Return to Private Education: Evidence from School-to-Work Transitions

Produced by: 
Universidad de Chile
Available from: 
January 2019
Paper author(s): 
Dante Contreras
Jorge Rodríguez
Sergio Urzúa
Topic: 
Education - Health
Labor
Year: 
2019

This paper investigates the labor market returns to high school types. We exploit comprehensive administrative data describing the school-to-work transition for the universe of Chilean students attending tenth grade in 2001. We discuss the role of self-selection into school types, pre-labor market abilities, firm characteristics, and present bounds for the parameters of interest. Attending private high schools has long-lasting effects on earnings. Moreover, the long-term returns to school-level valueadded measures and monetary investments in education are larger among private-school students. Our findings provide new insights into the association of school choice and the inertia of income inequality

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