Estimates internal rates of return on primary, secondary, and university education in Chile between 1960 and 1985. Results show a declining time-trend in rates of return (especially social rates) attributable to expansion of the education system, the shift of labor demand from middle education to primary skills, and increasing real costs of…

Chile's 1981 decentralization reforms kept most educational finance responsibility with the Ministry of Education, but transferred service-delivery responsibility to municipalities and nonprofit private schools. This paper examines this reform's effects. Municipal finance, tied to fiscal capacity, has created inequities in school expenditures.…