Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/278890 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16192
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper investigates the long-term impact on earnings of attending a tuition-free, top-quality university in Brazil. We identify the causal effect through a sharp discontinuity in an admission process based on test scores. If admitted, low-income students are found to increase their earnings by 26% ten years later. However, admission has a small and insignificant effect on high-income students. The difference between income groups is not explained by educational attainment, program choice, or selection into better-paying jobs. The evidence suggests that most low-income applicants, if not admitted, still graduate from college but with much lower returns to education. High-income applicants who just miss the cutoff, however, can find other opportunities such that earnings trajectories are unchanged. Our results underscore the role of affordable higher education in promoting social mobility.
Subjects: 
college wage premium
affordability
school quality
income groups
JEL: 
H52
I23
I26
Document Type: 
Working Paper

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