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Testing for Sheepskin Effects in Earnings Equations: Evidence for Five Countries

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Author Info

  • Denny, K.J.
  • Harmon, C.P.

Abstract

Using a dataset that allows consistent cross-country comparisons we test the non-linearity in a conventional earnings equation with respect to schooling. The findings suggest that assumption of linearity is not robust and that there are well determined positive returns to the completion of educational levels. However inferences are sensitive to the choice of functional form.

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Bibliographic Info

Paper provided by College Dublin, Department of Political Economy- in its series Papers with number 99/21.

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Length: 5 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:fth:dublec:99/21

Contact details of provider:
Postal: Ireland; University College Dublin, Department of Political Economy, Centre for Economic Research, Belfield, Dublin 4
Phone: +353-1-7067777
Fax: +353-1-283 0068
Web page: http://www.ucd.ie/economics/
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Related research

Keywords: TESTS ; INCOME ; ESTIMATOR;

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Cited by:
  1. Whitaker, Stephan, 2011. "The impact of legalized abortion on high school graduation through selection and composition," Economics of Education Review, Elsevier, vol. 30(2), pages 228-246, April.
  2. Denny, Kevin & Harmon, Colm & O'Connell, Philip J., 2000. "Investing in People: The Labour Market Impact of Human Resource Interventions Funded under the 1994-1999 Community Support Framework in Ireland," Research Series, Economic and Social Research Institute (ESRI), number PRS38.
  3. Natasa Bilkic & Thomas Gries & Margarethe Pilichowski, 2009. "Stay in School or Start Working? - The Human Capital Investment Decision under Uncertainty and Irreversibility," CESifo Working Paper Series 2825, CESifo Group Munich.
  4. Bitzan, John D., 2009. "Do sheepskin effects help explain racial earnings differences?," Economics of Education Review, Elsevier, vol. 28(6), pages 759-766, December.
  5. Habermalz, Steffen, 2003. "An Examination of Sheepskin Effects Over Time," IZA Discussion Papers 725, Institute for the Study of Labor (IZA).
  6. Hwang, Wei-Yei & Liao, Shu-Yi & Huang, Mao-Lung, 2013. "Real option, human capital investment returns and higher educational policy," Economic Modelling, Elsevier, vol. 31(C), pages 447-452.
  7. Arnaud Chevalier & Kevin Denny & Dorren McMahon, 2003. "A Multi-Country Study of Inter-Generational Educational Mobility," Working Papers 200314, School Of Economics, University College Dublin.
  8. Angel de la Fuente & Antonio Ciccone, 2003. "Human capital in a global and knowledge-based economy," UFAE and IAE Working Papers 562.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  9. Denny, K.J. & Harmon, C.P., 2000. "The Impact of Education and Training on the Labour Market Experiences of Yound Adults," Papers 00/1, College Dublin, Department of Political Economy-.
  10. Skalli, Ali, 2007. "Are successive investments in education equally worthwhile? Endogenous schooling decisions and non-linearities in the earnings-schooling relationship," Economics of Education Review, Elsevier, vol. 26(2), pages 215-231, April.
  11. Kevin J Denny & Colm P Harmon & Vincent O’Sullivan, 2003. "Functional Literacy, Educational Attainment and Earnings - A Multi-Country Comparison," Working Papers 200319, School Of Economics, University College Dublin.
  12. Nakabayashi, Masaki, 2011. "Schooling, employer learning, and internal labor market effect: Wage dynamics and human capital investment in the Japanese steel industry, 1930-1960s," MPRA Paper 30597, University Library of Munich, Germany.
  13. Kevin Denny & Patrick Orla Doyle, 2005. "Returns to basic skills in Central and Eastern Europe - a semi-parametric approach," Working Papers 200507, School Of Economics, University College Dublin.
  14. Hogan, Vincent & Walker, Ian, 2007. "Education choice under uncertainty: Implications for public policy," Labour Economics, Elsevier, vol. 14(6), pages 894-912, December.

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