College Licensing and Reputation Effects on the Labor Market


José Flor-Toro

Matteo Magnaricotte

Draft coming soon

Brief abstract: We study the effects on labor market outcomes of a licensing process that led to the closure of 1/3 of Peruvian colleges (2016-2021). Using a rich panel dataset of recent college graduates and a difference-in-differences model, we find an increase in wages for graduates from colleges that obtained a license and no significant effects for graduates from universities whose license was denied.

Slides are available when requested.