The Effect of College Quality in Participation and Wages in the Formal Job Market in Brazil
Higher Education Quality, Participation and Wages, Labor Market, Propensity Score Matching
Estimates of the effect of college quality in future wages are a recurring object of study
in labor economics. This master’s dissertation proposes to answer the following question:
what is the impact of undergraduate education quality in participation and wages in the
formal job market in Brazil. To do so, I use the identified database of ENADE for the
2004-2006 triennium along with the RAIS database for 2010 and 2015. With them, it is
possible not only to classify the courses according to the INEP classification, but also
have access to several socioeconomic characteristics, hours in the job, occupation, and
wages. With these main parameters, I use the causality identification method of
Propensity Score Matching. My estimates show that there is a positive effect in future
wages in the Brazilian formal job market of those who attend the best rated higher
education institutions, but not in employability.