Impact of university academic performance on financial returns to education in Chile

Abstract

This article examines the relationship between graduates' academic performance and the financial returns of their university education in Chile. By Analyzing data from 784 students who graduated from 10 selected Chilean universities between 2010 and 2016, this study utilizes linear and quantile regression to estimate returns. The results indicate that returns range from 4.9% to 15.0%, depending on the specifications and estimation methods employed. While linear regression suggests no significant association between academic performance and returns, quantile regression reveals a positive impact for lower and medium salary ranges, reducing the income gap with higher earners. The results of this study can be helpful in achieving a better understanding of the factors that influence returns to education.