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The role of credentials in the Canadian labour market

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Author Info
Ana M. Ferrer
W. Craig Riddell

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Abstract

We study the role of credentials or "sheepskin effects" in the Canadian labour market. Sheepskin effects refer to increases in wages associated with the receipt of a degree after controlling for educational inputs such as years of schooling. We find strong evidence of sheepskin effects associated with graduation from high school, community college or trade school, and university. The importance of credentials increases with educational attainment, accounting for 30 per cent of the return to 16 years of schooling but more than half of returns above 16 years. Our evidence indicates that both years of schooling and degree completion influence earnings.

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File URL: http://economics.ca/cgi/xms?jab=v35n4/12.pdf
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Publisher Info
Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 35 (2002)
Issue (Month): 4 (November)
Pages: 879-905
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Handle: RePEc:cje:issued:v:35:y:2002:i:4:p:879-905

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Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
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Related research
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Find related papers by JEL classification:
I2 - Health, Education, and Welfare - - Education
J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

Cited by:
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  1. Anna Crespo & Maurício Cortez, 2005. "The Sheepskin Effects Evolution From 1982 To 2002 In Brazil: The Roles Of Labor Supply And Demand Changes," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33th Brazilian Economics Meeting] 167, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
  2. Boris Vujčić & Vedran Šošić, 2009. "Return to Education and the Changing Role of Credentials in the Croatian Labor Market," Transition Studies Review, Springer, vol. 16(1), pages 189-205, May. [Downloadable!] (restricted)
  3. Pivnenko, Sergiy & DeVoretz, Don, 2003. "The Recent Economic Performance of Ukrainian Immigrants in Canada and the U.S," IZA Discussion Papers 913, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Daniel Boothby & Torben Drewes, 2006. "Postsecondary Education in Canada: Returns to University, College and Trades Education," Canadian Public Policy, University of Toronto Press, vol. 32(1), pages 1-22, March. [Downloadable!] (restricted)
  5. Patrick Duff & David Fryer, 2005. "Market Failure, Human Capital, and Job Search Dynamics in South Africa: The Case of Duncan Village," Working Papers 9624, University of Cape Town, Development Policy Research Unit. [Downloadable!]
  6. Flores-Lagunes, Alfonso & Light, Audrey, 2009. "Interpreting Degree Effects in the Returns to Education," IZA Discussion Papers 4169, Institute for the Study of Labor (IZA). [Downloadable!]
  7. Vincenzo Caponi & Miana Plesca, 2007. "Post-Secondary Education in Canada: Can Ability Bias Explain the Earnings Gap Between College and University Graduates?," IZA Discussion Papers 2784, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  8. Tracy L. Regan & Galen Burghardt & Ronald L. Oaxaca, 2006. "A Human Capital Model of the Effects of Abilities and Family Background on Optimal Schooling Levels," IZA Discussion Papers 1927, Institute for the Study of Labor (IZA). [Downloadable!]
  9. Frenette, Marc, 2007. "Est-ce que les universités profitent à la population locale de jeunes? Résultats provenant de la fréquentation des universités et des collèges, et des gains des diplômés suivant la création d," Direction des études analytiques : documents de recherche 2006283f, Statistics Canada, Direction des études analytiques. [Downloadable!]
  10. Frenette, Marc, 2007. "Do Universities Benefit Local Youth? Evidence from University and College Participation, and Graduate Earnings Following the Creation of a New University," Analytical Studies Branch Research Paper Series 2006283e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  11. Boudarbat, Brahim & Lemieux, Thomas & Riddell, Craig, 2008. "The Evolution of the Returns to Human Capital in Canada, 1980-2006," UBC Departmental Archives craig_riddell-2008-15, UBC Department of Economics, revised 22 Oct 2008. [Downloadable!]
    Other versions:
  12. Sweetman, Arthur, 2004. "Immigrant Source Country Educational Quality and Canadian Labour Market Outcomes," Analytical Studies Branch Research Paper Series 2004234e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  13. Savanti, Maria Paula & Patrinos, Harry Anthony, 2005. "Rising returns to schooling in Argentina, 1992-2002 : productivity or credentialism?," Policy Research Working Paper Series 3714, The World Bank. [Downloadable!]
  14. Sweetman, Arthur, 2004. "Qualité de l'éducation des immigrants dans leur pays d'origine et résultats sur le marché du travail canadien," Direction des études analytiques : documents de recherche 2004234f, Statistics Canada, Direction des études analytiques. [Downloadable!]
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