Levy, Santiago; López-Calva, Luis F. - 2019
progress in education. Yet average workers' earnings have stagnated, and earnings of those with higher schooling have fallen …, compressing the earnings distribution and lowering the returns to education. This paper argues that distortions that misallocate … differentials across schooling levels would widen, raising the returns to education. A no-misallocation path is constructed for the …