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The Stability Pattern of Sheepskin Effects and Its Implications for the Human Capital Theory--Screening Hypothesis Debate

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Author Info
Edward T. Gullason () (Division of Social Sciences, Dowling College)
Abstract

Typically, the empirical presence of sheepskin effects in the returns to schooling has been used as evidence supporting the screening hypothesis. In this study, sheepskin effects are found to exist, but are not stable across individuals according to whether or not they found their accumulated schooling relevant for their occupations. Rate of return estimates on years of schooling between these two groups of individuals are not stable either. This study demonstrates for the first time that an empirical analysis of sheepskin effects provides evidence supporting the human capital theory in addition to the screening hypothesis.

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File URL: http://college.holycross.edu/eej/Volume25/V25N2P141_149.pdf
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Publisher Info
Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

Volume (Year): 25 (1999)
Issue (Month): 2 (Spring)
Pages: 141-149
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Handle: RePEc:eej:eeconj:v:25:y:1999:i:2:p:141-149

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Related research
Keywords: Human Capital Occupation Rate of Return Schooling Screening

Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

Cited by:
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  1. Habermalz, Steffen, 2003. "An Examination of Sheepskin Effects Over Time," IZA Discussion Papers 725, Institute for the Study of Labor (IZA). [Downloadable!]
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