Sheepskin Effects in the Returns to Education: Accounting for Enrolment and Completion Effects
AbstractThis paper contributes to the literature by separately analysing the signalling (or sheepskin) effects of the enrolment in and the completion of vocational education and training as well as higher education. Moreover, we investigate the persistence of these sheepskin effects over time. We take advantage of the Longitudinal Surveys of Australian Youth, which contains comprehensive information about completed and uncompleted courses and subsequent labour market outcomes. We find that signalling effects form a substantial part of the total return to education but that they vary by type of course. In addition, we show that both course attendance and course completion contribute to the overall signalling effects.
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Bibliographic InfoPaper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2011n04.
Length: 21 pages
Date of creation: Mar 2011
Date of revision:
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Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia
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More information through EDIRC
Return to education; signalling effects; post-secondary education;
Find related papers by JEL classification:
- I20 - Health, Education, and Welfare - - Education - - - General
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-08-09 (All new papers)
- NEP-EDU-2011-08-09 (Education)
- NEP-LAB-2011-08-09 (Labour Economics)
- NEP-LMA-2011-08-09 (Labor Markets - Supply, Demand, & Wages)
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