Is Private Education Worth it? Evidence from School-to-Work Transitions in Chile.

ABSTRACT: Using comprehensive longitudinal data from Chile, we examine the impact of attending a private high school on labor market outcomes. The empirical strategy exploits conditional independence assumptions and leverages the effects of self-selection based on ability. We establish that private high schools boost average adult earnings by 99-144 dollars a month (relative to public schools), equivalent to a 15-22% premium. We then explore potential channels behind these effects. Both academic and non-academic factors emerge as mediators. Our findings highlight the importance of financial resources, as education investments have long-term impacts on private high school students, while yielding negligible effects for those attending public and voucher schools. Finally, we document the prominent rol

SUBMITTER: Contreras D 

PROVIDER: S-EPMC11633082 | biostudies-literature | 2024 Oct

REPOSITORIES: biostudies-literature