Code for: The returns to STEM programs for less-prepared students

The returns to selective STEM programs depend on: (a) whether students complete these programs, (b) earnings conditional on completion, and (c) counterfactual schooling choices. Much existing research has focused on only one of these margins---potentially leading to an incomplete picture of the returns to STEM education for students with less academic preparation. Using data from a Colombian university and two empirical strategies, we find that less-prepared students have higher earnings returns to selective STEM programs than more-prepared students, even though they are less likely to complete these programs. A key mechanism is that less-prepared students have lower-paying counterfactual schooling options.