The distributive effects of education: An unconditional quantile regression approach

Abstract

We use recent unconditional quantile regression methods (UQR) to study the distributive effects of education in Argentina. Standard methods usually focus on mean effects, or explore distributive effects by either making stringent modeling assumptions, and/or through counter- factual decompositions that require several temporal observations. An empirical case shows the flexibility and usefulness of UQR methods. Our application for the case of Argentina shows that education contributed positively to increased inequality in Argentina, mostly due to the effect of strongly heterogeneous effects of education on earnings.