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An Examination of Sheepskin Effects Over Time

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Author Info
Habermalz, Steffen () (Marquette University and IZA Bonn)

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Abstract

Previous empirical specifications are not flexible enough to capture the true pattern of sheepskin effects over time. If the quality of the match between the worker and the job contributes to earnings and if higher ability workers more easily reveal their true productivity, sheepskin effects will follow a concave pattern over time. Using the NLSY and measures of actual experience, a variety of specifications (including median regressions) confirm this pattern.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 725.

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Length: 15 pages
Date of creation: Feb 2003
Date of revision:
Handle: RePEc:iza:izadps:dp725

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Related research
Keywords: returns to education sheepskin effects

Find related papers by JEL classification:
I20 - Health, Education, and Welfare - - Education - - - General
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Jaeger, David A & Page, Marianne E, 1996. "Degrees Matter: New Evidence on Sheepskin Effects in the Returns to Education," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 733-40, November. [Downloadable!] (restricted)
  2. Edward T. Gullason, 1999. "The Stability Pattern of Sheepskin Effects and Its Implications for the Human Capital Theory--Screening Hypothesis Debate," Eastern Economic Journal, Palgrave Macmillan Journals, vol. 25(2), pages 141-149, Spring. [Downloadable!] (restricted)
  3. Farber, Henry S & Gibbons, Robert, 1996. "Learning and Wage Dynamics," The Quarterly Journal of Economics, MIT Press, vol. 111(4), pages 1007-47, November. [Downloadable!] (restricted)
  4. Belman, Dale & Heywood, John S, 1997. "Sheepskin Effects by Cohort: Implications of Job Matching in a Signaling Model," Oxford Economic Papers, Oxford University Press, vol. 49(4), pages 623-37, October. [Downloadable!] (restricted)
  5. Layard, Richard & Psacharopoulos, George, 1974. "The Screening Hypothesis and the Returns to Education," Journal of Political Economy, University of Chicago Press, vol. 82(5), pages 985-98, Sept./Oct. [Downloadable!] (restricted)
  6. Belman, Dale & Heywood, John S, 1991. "Sheepskin Effects in the Returns to Education: An Examination on Women and Minorities," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 720-24, November. [Downloadable!] (restricted)
  7. Hungerford, Thomas & Solon, Gary, 1987. "Sheepskin Effects in the Returns to Education," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 175-77, February. [Downloadable!] (restricted)
  8. Riley, John G, 1979. "Testing the Educational Screening Hypothesis," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages S227-52, October. [Downloadable!] (restricted)
  9. Edward T. Gullason, 1999. "The Stability Pattern of Sheepskin Effects and Its Implications for the Human Capital Theory--Screening Hypothesis Debate," Eastern Economic Journal, Eastern Economic Association, vol. 25(2), pages 141-149, Spring. [Downloadable!]
  10. Heywood, John S., 1994. "How widespread are sheepskin returns to education in the U.S.?," Economics of Education Review, Elsevier, vol. 13(3), pages 227-234, September. [Downloadable!] (restricted)
  11. Roger Koenker & Kevin F. Hallock, 2001. "Quantile Regression," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 143-156, Fall. [Downloadable!] (restricted)
  12. Harley Frazis, 2002. "Human capital, signaling, and the pattern of returns to education," Oxford Economic Papers, Oxford University Press, vol. 54(2), pages 298-320, April.
  13. Denny, Kevin J & Harmon, Colm P, 2001. "Testing for Sheepskin Effects in Earnings Equations: Evidence for Five Countries," Applied Economics Letters, Taylor and Francis Journals, vol. 8(9), pages 635-37, September. [Downloadable!] (restricted)
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