Returns to schooling and heterogeneity of educational returns in the Northeast region
DOI:
https://doi.org/10.54766/rberu.v20i3.1283Keywords:
Return to Education, Human Capital, Labor MarketAbstract
The objective of this research was to analyze the returns to education in the Northeast region of Brazil, observing the differences between its states for the year 2023. The investigation is based on the Mincerian wage equation with Heckman correction, nonlinear extensions of the Trostel model, and the application of quantile regression, using microdata from the Continuous National Household Sample Survey (PNADC). Linear and quantile models were estimated, allowing the measurement of both the average returns to education and the heterogeneity of these returns across the income distribution. The results indicate that the Northeast presents average levels of education and income lower than the national average. The estimates show that educational returns decrease after certain levels of study but are higher in the region for five and nine years of schooling. Quantile models reveal strong heterogeneity in educational returns, which are substantially higher in the upper income quantiles, indicating that education benefits workers unequally.
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