Econometric evidence, education, income, Mexican-American border region, parameter heterogeneity


This study examines the relationship between education and income in Texas counties that are located along the border with Mexico. Estimation results confirm earlier research for this region. Parameter heterogeneity underscores the increased importance of education in the service-oriented labor that has emerged in recent years in the United States. Simulation results quantify the income gains that could potentially be observed if drop out rates were lowered in the border counties included in the sample.

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