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Gender differences in the returns to education and STEM degree in Mexico
The purpose of this study is to empirically investigate gender differences in the returns to different levels of education and studying in STEM fields in Mexico. Specifically, we estimate the effects of education on employment and income. We use data about more than 4.5 m individuals in the year 2020 in Mexico to estimate the average treatment effects of different levels of education and studying in STEM fields on income and employment. To obtain these estimates, we apply several econometric models that address non-random selection into employment and different levels of education. The results of the analysis suggest that, on average, women experience negative returns to STEM education, both in terms of income and employment probability. In contrast, studying in STEM field has positive effect on the income of men. Additionally, in terms of income, women have higher returns to secondary, vocational and bachelor’s levels of education, while men have greater returns from a master’s degree.