Benefits to elite schools and the formation of expected returns to education: Evidence from Mexico City

Pre-print, Working paper: We study the effects of admission into elite public high schools in Mexico City on students' expected earnings, arguing these effects provide an indication of the value-added those schools produce. Using data for the centralized and exam-based allocation of students into schools and an adapted regression discontinuity design strategy, we find that admission substantially increases learning achievement, and also the future earnings and returns students expect from a college education, but no effect on the earnings expected with high school education alone. This suggests that students believe that the benefits from their elite education are complements to a college education.

Author(s)

Ricardo Estrada, Jérémie Gignoux

Date of publication
  • 2014
Keywords JEL
D83 D84 I21
Keywords
  • Elite high schools
  • Earnings expectations
  • Returns to education
  • Beliefs formation
Internal reference
  • PSE Working Papers n°2014-06
Version
  • 1