At a Crossroads

Higher education (HE) in Latin America and the Caribbean (LAC) has expanded dramatically in the last fifteen years, as the average gross enrollment rate has grown from 21% to 43% between 2000 and 2013, and many new institutions and programs have opened. While HE access has become more equitable, and HE supply has become more varied, many of the system s 'new' students are, on average, less academically ready than their more advantaged counterparts. Furthermore, only half of HE students, on average, complete their degree; while still high, labor market returns to HE are declining, and vary greatly across institutions and programs. Thus, HE is at a crossroads today. Given the region s urgency to raise productivity in a low–growth, fiscally constrained environment, going past this crossroads requires the formation of skilled human capital fast and efficiently. This volume contributes to the discussion by studying quality, variety, and equity of HE in LAC. The volume presents comprehensive evidence on the recent HE expansion and evolution of HE labor market returns. Using novel data and state–of–the–art methods, it studies demand– and supply– drivers of the recent expansion. It investigates the behavior of institutions and students, and explores the unintended consequences of large–scale HE policies. Framing the analysis are the singular characteristics of the HE market, and the market segmentation induced by the variety of students and institutions in the system. At this crossroads, a role emerges for incentives, information, accountability, and choice.