Document Type

Honors Project - Open Access


I use the Mincerian wage equation to estimate the returns to education in Brazil from 2002 to 2008. I then use these estimates as variables that affect the decision made by potential students of whether to stay in school for one additional year. I use annually collected household survey data (PNAD) from the Brazilian Institute for Geography and Statistics (IBGE). Results indicate that returns to education have an effect on every student's decision. Although the relationship is positive, my analysis suggests that students make their decision to stay or leave school based on schooling degrees rather than on individual grades.



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