Estimating the Returns to Education in Argentina: 1992-2002

Abstract

Returns to schooling in urban Argentina for a ten-year period are estimated. In addition to comparable earnings functions, we also estimate the returns using quantile regression analysis to detect differences in the returns across the distribution. Over time, men in higher quantiles have higher returns to schooling compared to those in the lower quantiles. For women returns are highest at the lowest quantile. The returns to education increased during the last decade. We do not rule out that increased demand for skills is driving the increasing returns over the decade.

Keywords: returns to schooling, wages, quantile regressions

JEL Classification: I21, J31