The health influence on returns to education in Brazil : a nonlinear approach

This paper investigates the returns to education in terms of individuals' health in Brazil. We use the Heckman procedure (1979) and a nonlinear model that allows the consideration of the existence of increasing returns. The study employs microdata from National Survey by Household Sample for 2003 and 2008. The health status is measured by self-assessment of individuals. We determine that the rate of returns decreases until the fourth and fifth years of schooling, that is, until the completion of primary education when increasing returns start. The evidence also indicates that the rate of return to education is lower for individuals in poor health; for people with 15 or more years of schooling, the rate of return is 10-14.5% lower for those who are unhealthy.