El retorno económico de la educación media técnico profesional en Chile

Abstract

This paper analyzes the effect of attending vocational secondary education on labor market outcomes. Using administrative data on school enrollment, labor income, and employment, we identify the type of secondary school attended, as well as the number of months of formal employment and monthly income, ten years after graduating from high school. We supplement our data with historical records about the local availability of vocational secondary education, which we use to construct instrumental variables.Our results show that compared to conventional secondary schools, vocational secondary education increases formal employment - between 0.4 and 1.6 months of employment per year depending on its type. On the other hand, we document that graduates from vocational schools have, on average, lower wages than those of individuals with conventional high school degrees. However, we find significant heterogeneity by type of vocational education. For example, our results show that industry-oriented vocational schools over perform the other alternatives, including conventional secondary education. For this type, we estimate a return of 42,100 Chilean pesos per month. In contrast, students who attended technical high schools earn 54,610 Chilean pesos less than those obtaining high school degrees from conventional high schools.Overall, our findings provide new insights on the return to vocational education in Chile. They inform policy makers about the challenges and potential benefits associated with non-conventional high schools.