Wage heterogeneity in the graduate market: Industry and public-private differences in Chile

Lifelong education has proven to be a significant challenge in the policy arena. The combination of formal education and labor-centered institutions has pressed the development of different mechanisms to understand the role of human capital accumulation in socioeconomic mobility and organizational performance. While the narratives of lifelong education have primed labor and educational studies across developed economies, in the case of developing economies, those logics appear contested by development economics conditions. In this paper, I use the context of the expansion of the graduate educational market and its policy reforms to analyze how a developing economy copes with a change in the availability of a highly educated workforce. Using panel and pseudo-panel data, I examine the evolution of educational returns for the graduate workforce in Chile between 1990 and 2018, considering the differences between industries and public and private sectors. The results point out that there are no public-private differences and high heterogeneity across economic sectors. The policy- and individual-level consequences are discussed.