Rentabilidad privada de la educación para personas que estudiaron en colegios públicos y privados: Caso Paraguay

Education has been recognized as a key factor for the development of countries and their economies, promoting socioeconomic mobility and providing the tools to break the cycle of poverty. This interest has grown, encompassing both developed and developing countries. Globally, the education system is mainly divided between public and private institutions, sparking debates about which should dominate. Although the choice varies between countries, the common goal is to ensure quality, inclusion, and development.Despite the consensus on the importance of education, debates arise regarding its impact on income inequality, the social and private returns of education, and the comparative quality between public and private education. This study focuses on estimating the returns to education in Paraguay, analyzing salary differences between graduates of public and private schools.Using Mincer’s equation, which relates education and work experience to income, the study employs cross-sectional data obtained through a survey conducted in the city of Encarnación, Paraguay. The results indicate that private school graduates show no income differences compared to those who attended public schools. Furthermore, the study concludes that the rate of return on education is 10.2%.This analysis contributes to the debate on the effects of educational systems in developing countries, providing empirical evidence on salary differences between the two types of education, which suggests that those who studied in public schools generate lower income