Do elite colleges help talented students join the social elite, or help incumbent elites retain their positions? We combine intergenerationally-linked data from Chile with a regression discontinuity design to show that, looking across generations, elite colleges do both. Lower-status individuals...

Translated from English by O.Fadina

The paper analyzes the incentives faced by universities to provide high quality education services as they are shaped by competition and labor market signals. The paper argues that in higher education, unlike other sectors of the economy, liberalization and competition in and of themselves do...