Territorial differences in the return to education in Chile: Evidence for the Biobio and Metropolitana regions

Abstract

This paper addresses the differences in the return to education between two regions with the greatest number of higher-education institutions in Chile, Biobio and Metropolitana. Several variants of the Mincer equation are estimated under the Heckit approach using data from the CASEN survey of 2000 and 2011. The results confirm the existence of territorial differences to the detriment of the Biobio region, which are observed in the returns to education, labor experience, and credential effect. Furthermore, the evidence supports the idea of a strong gender gap in earnings inside both regions and the presence of ethnic discrimination in the Metropolitana region.