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The “Sheepskin Effects” of Canadian Credentials

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  • Hui, Taylor Shek-wai

Abstract

This 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 Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 17994.

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Date of creation: 10 Nov 2004
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Handle: RePEc:pra:mprapa:17994

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Keywords: Post-secondary Education; Human Capital; Signaling Effects; Canada.;

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  1. Riley, John G, 1979. "Testing the Educational Screening Hypothesis," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 87(5), pages S227-52, October.
  2. Hui, Taylor Shek-wai, 2004. "The US/Canada Difference in Postsecondary Educational Choice," MPRA Paper 17995, University Library of Munich, Germany.
  3. Habermalz, Steffen, 2003. "Job Matching and the Returns to Educational Signals," IZA Discussion Papers 726, Institute for the Study of Labor (IZA).
  4. 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, Elsevier, vol. 62(2), pages 237-240, February.
  5. James J. Heckman & Lance J. Lochner & Petra E. Todd, 2003. "Fifty Years of Mincer Earnings Regressions," NBER Working Papers 9732, National Bureau of Economic Research, Inc.
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