Returns to education in Colombia: Professional differentials

Abstract

This study aims to estimate the private returns to education in Colombia by profession and gender during the 2021–2024 period, identifying inter-professional differentials and gender-based disparities in human capital valuation. The methodology is based on the Mincer (1974) earnings function, corrected for sample selection bias using Heckman's (1979) two-stage procedure. This includes a probit model for labor force participation and a wage equation incorporating the inverse Mills ratio. Results indicate a stable returns hierarchy: economists and biologists exhibit the highest returns (0.054–0.060), followed by lawyers and engineers/architects (0.044–0.052), while teachers and nurses report the lowest values (0.022–0.033). Women consistently show lower returns than men across all professions, though a slight convergence is observed by 2024. The Colombian labor market remunerates human capital heterogeneously, perpetuating occupational and gender inequities that constrain both efficiency and the social returns of educational investment. Policy interventions are needed to enhance returns in socially strategic professions, reduce gender gaps, and align market incentives with national development goals.