The “Sheepskin Effects” of Canadian Credentials
AbstractThis paper re-examines the “sheepskin effects” of educational credentials in Canada using data from the 1996 Census and Survey of Labour and Income Dynamics. I found that the estimated credential effects are sensitive to specifications. Regressions analysis in the standard model may not be adequate to control for the workers’ productivity difference unrelated to the credentials. Particularly, the misspecification of the earnings equation and pooling sample might introduce biases into the estimates of credential effects. With carefully constructed comparison groups, the estimated sheepskin effects of a Bachelor’s degree are smaller than that reported in Ferrar and Riddell (2002).
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 17994.
Date of creation: 10 Nov 2004
Date of revision:
Post-secondary Education; Human Capital; Signaling Effects; Canada.;
Find related papers by JEL classification:
- C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
- I20 - Health, Education, and Welfare - - Education - - - General
- J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
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- Hui, Taylor Shek-wai, 2004. "The US/Canada Difference in Postsecondary Educational Choice," MPRA Paper 17995, University Library of Munich, Germany.
- James J. Heckman & Lance J. Lochner & Petra E. Todd, 2003.
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NBER Working Papers
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- Riley, John G, 1979. "Testing the Educational Screening Hypothesis," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages S227-52, October.
- Habermalz, Steffen, 2003. "Job Matching and the Returns to Educational Signals," IZA Discussion Papers 726, Institute for the Study of Labor (IZA).
- Park, Jin Heum, 1999. "Estimation of sheepskin effects using the old and the new measures of educational attainment in the Current Population Survey," Economics Letters, Elsevier, vol. 62(2), pages 237-240, February.
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