Returns to Private Education in Peru

23 Pages Posted: 21 Apr 2007

See all articles by Sebastián Calónico

Sebastián Calónico

Inter-American Development Bank (IDB)

Hugo Ñopo

Inter-American Development Bank (IDB); IZA Institute of Labor Economics

Date Written: March 2007

Abstract

The private provision of educational services has been representing an increasing fraction of the Peruvian schooling system, especially in recent last decades. While there have been many claims about the differences in quality between private and public schools, there is no complete assessment of the different impacts of these two type of providers on the labor markets. This paper is an attempt to provide such a comprehensive overview. We explore private-public differences in the individual returns to education in Urban Peru. Exploiting a rich pair of data sets (ENNIV 1997 and 2000) that include questions on type of education (public vs. private) for each educational level (primary, secondary, technical tertiary and university tertiary) to a representative sample of adults we are able to measure the differences in labor earnings for all possible educational trajectories. The results indicate higher returns to education for those who attended private schools than those who attended the public system. Nonetheless, these higher returns also show higher dispersion, reflecting wider quality heterogeneity within the private system. The private-public differences in returns are more pronounced at the secondary than at any other educational level. On the other hand, the private-public differences in returns from technical education are almost non-existent. A cohort approach paired with a rolling-windows technique allows us to capture generational evolutions of the private-public differences. The results indicate that these differences have been increasing during the last two decades.

Keywords: returns to schooling, wages

JEL Classification: J31, I2

Suggested Citation

Calónico, Sebastián and Nopo, Hugo, Returns to Private Education in Peru (March 2007). IZA Discussion Paper No. 2711. Available at SSRN: https://ssrn.com/abstract=981696

Sebastián Calónico

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

HOME PAGE: http://www.iadb.org/RES/researcher.cfm?au_id=794

Hugo Nopo (Contact Author)

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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