Returns to education in Argentina: a regional analysis

Workshop; VI Workshop in honour of Geoffrey J. D. Hewings; 2015

Universidad de Santiago de Compostela

In this paper we use micro-level data to estimate the returns to education by region in Argentina and analyse the regional differences on wages to identify which part is being explained by the endowment of human capital and which part is being explained by differences in returns to this human capital. More specifically, we quantify regional differentials in the returns to education by estimating Mincerian equations with 2SLS regression, and discompose the wage gaps by applying Oaxaca-Blinder decomposition. The results show an important heterogeneity both in endowments of human capital and in the returns to education across regions in Argentina.