Returns to Higher Education: Vocational Education vs College

40 Pages Posted: 24 Jan 2018

See all articles by Ana Maria Montoya

Ana Maria Montoya

University of Chile - Industrial Engineering

Carlos Noton

Dept of Industrial Engineering - University of Chile

Alex Solis

Uppsala University, Universidad Catolica de la Santisima Concepcion

Date Written: December 28, 2017

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.

Keywords: Return to Education, Vocational Education, College

Suggested Citation

Montoya Squif, Ana Maria and Noton, Carlos and Solis, Alex, Returns to Higher Education: Vocational Education vs College (December 28, 2017). Available at SSRN: https://ssrn.com/abstract=3106354 or http://dx.doi.org/10.2139/ssrn.3106354

Ana Maria Montoya Squif

University of Chile - Industrial Engineering ( email )

Rep├║blica 701, Santiago
Chile

Carlos Noton (Contact Author)

Dept of Industrial Engineering - University of Chile ( email )

Beauchef 851
Santiago, RM
Chile

HOME PAGE: http://www.dii.uchile.cl/~cnoton/

Alex Solis

Uppsala University, Universidad Catolica de la Santisima Concepcion ( email )

Box 513
Uppsala, 751 20
Sweden

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