Return to schooling or university degree award?

Abstract

The “rate of return to schooling” in Chile has been widely discussed in various studies with crosssectional data, cohort data, and model in differences. However, this is the first study to use the survey Panel Casen 1996-2001-2006, which is important as new evidence because the panel data improves the ability to estimate the rate of return (Heckman et al., 2006). The results are sensitive to alternative estimation methods such as ordinary least squares, fixed effects panel and random effects panel. We conclude that in Chile there is only a university degree award rather than “rate of return to schooling”.