“The impact of Student Loans and Education on Labor Outcomes: Vocational Education vs College”
30 May, 2018 13:00 hrs
Students scoring above certain thresholds in the college admission
test are eligible for education loans and free scholarships in Chile.
Given the random variation in college enrollment and the amount of
debt induced by these cutoff rules, we use a regression discontinuity
design to identify the marginal returns of vocational education versus
college education and the impact of debt burden on educational choices
and labor outcomes. 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 caused by either program. 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.
Location:
Sala de Consejo, Beauchef 851, Floor 4 - Departamento de Ingeniería Industrial, U. de Chile
Speaker:
MIPP Chile 2024