The Effectiveness of the Student Financing Fund: An Analysis of the Employability of Graduates
FIES, Human Capital Theory, Employability
This dissertation Project investigates the effectiveness of the Student Financing Fund (FIES) in promoting employability and social mobility for graduates between 2014 and 2023. Grounded in Human Capital Theory , the study analyzes whether state investment mitigates labor shortages or results in underemployment and allocative inefficiency due to the mismatch between academic training and the demands of the Brazilian labor market. The quantitative methodology is based on the pairing of microdata from the National Fund for Educational Development (FNDE) with the Annual Social Information Report (RAIS). It utilizes an extended Mincer Earnings Equation and the Heckman Model to correct for sample selection bias. Through this strategy, the research aims to measure the wage returns of graduates and verify the occurrence of occupational mismatch, providing empirical support for educational governance and evaluating the sustainability of the Income-Contingent Loan (ICL) model.