Are Human Capital Gains from Short Cycle Higher Education (ISCED5) Relevant for Latin American Countries?

Career Technical and Vocational Higher Education. also known as short cycle higher education (ISCED 5) is important because it responds to the global demands in the 4th industrial revolution (4 i). This revolution focuses on technology. knowledge production and innovation. In Chile. the demand for short cycle higher education (ISCED 5) has reached about 45% of the total enrollment in Higher Education. It matched the number of college and research university graduates in 2015 (SIES. 2016). In the future. this trend is expected to continue. thus decreasing the preference for university degrees and increasing the enrollment in 2 and 4 year colleges (Paredes. 2018). In other Latino countries. there is also an increase in Career Technical and Vocational Higher Education (ISCED 5), but this type of education does not seem to be focused on the jobs of the future, sustainability, nor environmental care. Erick Hanushek’s methodological analysis of the returns of education in the US states is followed (2017). The implications of these results in the training of students in ISCED 5 in Latin America are discussed.