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Expectations about Returns to Education. The Role of Parental and Youths’ Characteristics

Author

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  • Novella, Rafael
  • Repetto, Andrea

Abstract

Investing in human capital requires, among others, access and capacity to process information. This paper focuses on understanding the role of expected returns to education in determining schooling decisions. Using data for youths in seven countries in Latin America and the Caribbean, we find that expected returns to education are associated with schooling choices, particularly for tertiary education. However, expectations differ across individuals and in specific domains that public policies can address to reduce intra- and inter-generational transmission of poverty and inequality.

Suggested Citation

  • Novella, Rafael & Repetto, Andrea, 2022. "Expectations about Returns to Education. The Role of Parental and Youths’ Characteristics," Research Department working papers 1867, CAF Development Bank Of Latinamerica.
    • Handle: RePEc:dbl:dblwop:1867
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    File URL: https://scioteca.caf.com/handle/123456789/1867
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