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Elite Colleges as Engines of Upward Mobility: Evidence from Colombia’s Ser Pilo Paga

Author

Listed:
  • Juliana Londoño-Vélez
  • Catherine Rodriguez
  • Fabio Sanchez
  • Luis E. Álvarez-Arango

Abstract

We study the impact of elite colleges on upward mobility. An unprecedented financial aid reform in Colombia dramatically increased the enrollment of academically successful students of low socioeconomic status (SES) in high-quality universities. We leverage the policy’s stringent eligibility criteria and population-wide administrative microdata, using regression discontinuity (RD) and difference-in-difference (DD) methodologies to estimate causal effects on later-life educational and labor-market outcomes. The program notably boosted attendance of low-SES high-achievers at colleges with high value-added, increasing their returns to ability. Low-SES students are more likely to obtain bachelor’s degrees from these colleges, especially in STEM fields, and they achieve higher scores in the college graduation exam. Nine years later, their earnings are 18 log points higher, with a greater likelihood of being in the top 1%, reflecting increased upper-tail mobility. The policy successfully narrowed socioeconomic gaps in college quality, attainment, skill development, earnings, and the returns to ability.

Suggested Citation

  • Juliana Londoño-Vélez & Catherine Rodriguez & Fabio Sanchez & Luis E. Álvarez-Arango, 2023. "Elite Colleges as Engines of Upward Mobility: Evidence from Colombia’s Ser Pilo Paga," NBER Working Papers 31737, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:31737
    Note: DEV ED LS PE
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    Cited by:

    1. Penney, Jeffrey & Lehrer, Steven F. & Bernal, Gloria L. & Reyes, Luis Carlos, 2023. "Do opportunities for low-income students at top colleges promote academic success? Evidence from Colombia's Ser Pilo Paga program," CLEF Working Paper Series 64, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    2. Rodríguez Arenas, Jorge Leonardo, 2024. "¿Ampliando oportunidades o desigualdades? Efectos de un crédito-beca en estudiantes de bajo desempeño académico," Documentos CEDE 21189, Universidad de los Andes, Facultad de Economía, CEDE.
    3. Collante Zárate, Sofía & Rodríguez Orgales, Catherine & Sanchez Torres, Fabio, 2024. "The power of a meal. School feeding and its educational effects: Evidence from Colombia," Documentos CEDE 21155, Universidad de los Andes, Facultad de Economía, CEDE.

    More about this item

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

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