A MULTILEVEL ANALYSIS OF THE RETURNS TO EDUCATION IN ECUADOR. THE MULTIFACETED IMPACT OF HUMAN CAPITAL

Mercy Raquel ORELLANA BRAVO, Monica RAILEANU SZELES, Dalia Maritza ARGUDO BARRERA

Abstract


This paper analyses the returns to education in Ecuador based on cross-sectional data collected by a National Survey at the individual- and canton-levels in 2005 and 2015. The multilevel analysis provides the methodological framework that allows capturing the regional peculiarities of data as well as addressing the high regional economic heterogeneity. The two level- random intercept and random slope models are used to examine the impact of individual-level and canton-level characteristics on the labour income. In subsidiary, the paper explains the proportion of variance in individual- level income that is explained by canton- level characteristics.


Keywords


regional heterogeneity, return to education, variance

JEL Codes


I26; J31;

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References


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DOI: http://dx.doi.org/10.1515/saeb-2016-0133

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