The Expansion of Higher Education in Colombia: Bad Students or Bad Programs?

A rapid expansion in the demand for post-secondary education triggered an unprecedented boom of higher education programs in Colombia, possibly deteriorating quality. This paper uses rich administrative data matching school admission information, socio-economic characteristics of the young graduates, standardized test scores pre- and post-tertiary education and entry wages, to assess the heterogeneity in the value added generated by new higher education programs. Our findings show that once we account for self-selection the penalty of attending a recently created program, which initially appeared to be quite large, becomes close to zero.

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