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Unbundling returns to postsecondary degrees and skills: evidence from Colombia

Author

Listed:
  • Matias Busso

    (Inter-American Development Bank - Inter-American Development Bank)

  • Sebastián Montaño

    (The University of Maryland)

  • Juan Muñoz-Morales

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

Abstract

Using longitudinal data of college graduates in Colombia, we estimate labor market returns to postsecondary degrees and to various skills—including literacy, numeracy, foreign language, and field-specific skills. Graduates of academic programs and schools of higher reputation obtain higher earnings relative to vocational public programs. A one standard deviation increase in each skill predicts average earnings increases of 1–3%. Returns vary along the earnings distribution, with tenure, with the degree of job specialization, and by gender. Our results imply that degrees and skills capture different human capital components that are rewarded differently in the labor market.

Suggested Citation

  • Matias Busso & Sebastián Montaño & Juan Muñoz-Morales, 2024. "Unbundling returns to postsecondary degrees and skills: evidence from Colombia," Post-Print hal-04816520, HAL.
    • Handle: RePEc:hal:journl:hal-04816520
    DOI: 10.1080/09645292.2024.2403570
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