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Students scoring above a given threshold in the college admission test are eligible for education loans in Chile. Given the random variation in college enrollment induced by this cutoff rule, we use a regression discontinuity design to identify the marginal returns of vocational education versus college education. We use individual-level data on educational background and labor history for the universe of test takers in 2007. We find no differences in earnings, employment, or participation in the formal sector. Given the more expensive tuition fees, more years of instruction, and lower probability of graduation, the students induced to enroll in college have suffered from high-income losses in the margin.

We estimate the correlation of foreign bank penetration and dollarization with competition in the banking industry in sixteen Latin American countries during the period 1995–2008. We apply Boone’s methodology to compute the intensity of competition. Our results suggest that in countries with an initial low level of competition, foreign ownership tends to foster rivalry among banks, whereas the opposite is true in countries with an initial high level of competition. The adoption of dollarization or a currency board, which reduces transaction costs and facilitates financial integration, has a positive correlation with competition. This is the case for Ecuador, El Salvador, and Argentina

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