Document Type



wage differentials; public education; econometrics; ANPEC; RAIS

Rights Management



This research contributes to the literature and fills a gap in the Brazilian literature on the returns to public and private education. Most research examining this differential are subject to potential bias because of the lack of controls for unobservable variables. This work accounts for unobservable traits by leveraging the methodology proposed by Dale and Krueger (2002) and data from the National Association of Graduate Centers in Economics (ANPEC) and administrative data from the Annual List of Social Information (RAIS). The findings indicate that the positive earnings differential for public education turns insignificant when controls for unobservable characteristics are accounted for in the model. This result together with previous literature indicate that in Brazil private institutions of higher education complements public institutions and contribute to produce similarly qualified human capital.