PT - JOURNAL ARTICLE AU - Rodríguez, Jorge AU - Urzúa, Sergio AU - Reyes, Loreto TI - Heterogeneous Economic Returns to Post-Secondary Degrees: Evidence from Chile AID - 10.3368/jhr.51.2.0213-5474R1 DP - 2016 Mar 31 TA - Journal of Human Resources PG - 416--460 VI - 51 IP - 2 4099 - http://jhr.uwpress.org/content/51/2/416.short 4100 - http://jhr.uwpress.org/content/51/2/416.full SO - J Hum Resour2016 Mar 31; 51 AB - We analyze the economic returns to post-secondary degrees in Chile. We posit a schooling decision model with unobserved ability, degree-specific tuition costs, and earnings. We use administrative records to carry out our empirical analysis. Our results show positive average returns to post-secondary education, especially for five-year degrees. However, we also uncover significant heterogeneity. We document how unobserved characteristics (ability) determine the economic benefits of first- and second-best choices, even leading to negative returns to post-secondary degrees. Our findings illustrate the importance of allowing for heterogeneous treatment effects and individuals’ choices when examining the returns to education.