PT - JOURNAL ARTICLE AU - Rodríguez, Jorge AU - Urzúa, Sergio AU - Reyes, Loreto TI - Heterogeneous Economic Returns to Postsecondary Degrees: Evidence from Chile AID - 10.3368/jhr.51.2.0213-5474R1 DP - 2015 Nov 30 TA - Journal of Human Resources 4099 - http://jhr.uwpress.org/content/early/2015/11/20/jhr.51.2.0213-5474R1.short 4100 - http://jhr.uwpress.org/content/early/2015/11/20/jhr.51.2.0213-5474R1.full AB - We analyze the economic returns to postsecondary 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 postsecondary 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 postsecondary degrees. Our findings illustrate the importance of allowing for heterogeneous treatment effects and individual’s choices when examining the returns to education.