Returns to education in Ecuador: The role of family social capital and territorial differences

Abstract

In this study we aim at estimating the economic return to education with a territorial perspective. Furthermore, we aim at identifying the effect of the family’s social capital, proxied by language of parents, on the economic returns to education. Results show that education provides different returns to individuals that differ by their family backgrounds, with a significant disadvantage on children whose parents speak an indigenous language. We observe that the territory can contribute to these disparities by up to 7%.