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Do Colombian students underestimate higher education returns?

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Autores
Gamboa Niño, Luis Fernando
Rodríguez Lesmes, Paul Andrés

Fecha
2014

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Universidad del Rosario

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Abstract
We analyze the determinants of subjective returns of higher education in Colombia. The information on expectations has been collected in categories, motivating the use of interval regression and an ordered probit approaches for modeling the relationship between beliefs and measures of ability, conditioning on individual, school and regional covariates. The results suggest that there are considerable differences in the size of the expected returns according to some population groups and a strong dominance of college against technical education. Gender gaps disappear in college education but it is found that girls tend to believe that professional wages are more concentrated into higher income categories than boys. Finally, it seems that Colombian students overestimate the pecuniary returns to education.
Palabras clave
Subjective expectations , Ex-ante returns , Colombia , Schooling choices
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