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Convexity and sheepskin effects in the human capital earnings function : recent evidence for Filipino men

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  • Schady, Norbert R.

Abstract

Much attention has been paid to the issue of possible nonlinearities in the relationship between log wages and schooling in the literature on both the United States and developing countries. The author uses data from a recent household survey for the Philippines, the 1998 Annual Poverty Indicator Survey, to test the fit of the log-linear specification for Filipino men. He presents results based on various estimation strategies, including spline regressions and semi-parametric regressions with a large number of dummy variables for years of schooling and experience. He concludes that: 1) There appear to be large differences between rates of return to education across different levels in the Philippines. The wage premia for both primary and secondary education are significantly smaller than those for tertiary education. 2) Within each level - primary, secondary, and university - the last year of schooling is disproportionately rewarded in higher wages. That is, there appear to be clear sheepskin effects associated with graduation.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2566.

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Date of creation: 31 Mar 2001
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Handle: RePEc:wbk:wbrwps:2566

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Related research

Keywords: Health Monitoring&Evaluation; Teaching and Learning; Curriculum&Instruction; Gender and Education; Primary Education;

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References

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Citations

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Cited by:
  1. World Bank, 2001. "Philippines : Poverty Assessment, Volume 2. Methodology," World Bank Other Operational Studies 15445, The World Bank.
  2. World Bank, 2005. "Malaysia : Firm Competitiveness, Investment Climate and Growth," World Bank Other Operational Studies 8310, The World Bank.
  3. Yamauchi, Futoshi, 2006. "Early childhood nutrition, schooling, and sibling inequality in a dynamic context: evidence from South Africa," FCND briefs 203, International Food Policy Research Institute (IFPRI).
  4. Gibson, John & Fatai, Osaiasi Koliniusi, 2006. "Subsidies, selectivity and the returns to education in urban Papua New Guinea," Economics of Education Review, Elsevier, vol. 25(2), pages 133-146, April.
  5. Sebastian Calonico & Hugo Ñopo, 2007. "Returns to Private Education in Peru," Research Department Publications 4516, Inter-American Development Bank, Research Department.
  6. Anna Crespo & Maurício Cortez, 2005. "The Sheepskin Effects Evolution From 1982 To 2002 In Brazil: The Roles Of Labor Supply And Demand Changes," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33th Brazilian Economics Meeting] 167, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  7. World Bank, 2001. "Philippines : Poverty Assessment, Volume 1. Main Report," World Bank Other Operational Studies 15443, The World Bank.
  8. Aashish Mehta & Hector Villarreal, 2008. "Why do diplomas pay? An expanded Mincerian framework applied to Mexico," Applied Economics, Taylor & Francis Journals, vol. 40(24), pages 3127-3144.
  9. Nga Nguyet Nguyen, 2002. "Trends in the education sector from 1993 - 98," Policy Research Working Paper Series 2891, The World Bank.
  10. Kirdar, Murat G. & Dayioglu-Tayfur, Meltem & Koc, Ismet, 2014. "Does Longer Compulsory Education Equalize Schooling by Gender and Rural/Urban Residence?," IZA Discussion Papers 7939, Institute for the Study of Labor (IZA).
  11. Yamauchi, Futoshi & Liu, Yanyan, 2012. "School quality, labor markets and human capital investments : long-term impacts of an early stage education intervention in the Philippines," Policy Research Working Paper Series 6247, The World Bank.
  12. Sebastian Calonico & Hugo Ñopo, 2007. "Retornos a la Educación Privada en Perú," Research Department Publications 4517, Inter-American Development Bank, Research Department.
  13. Yamauchi, Futoshi & Tiongco, Marites, 2012. "Why women are progressive in education?: Gender disparities in human capital, labor markets, and family arrangement in the Philippines," IFPRI discussion papers 1155, International Food Policy Research Institute (IFPRI).
  14. Fiess, Norbert M. & Verner, Dorte, 2003. "Migration and human capital in Brazil during the 1990s," Policy Research Working Paper Series 3093, The World Bank.
  15. Yamauchi, Futoshi & Liu, Yanyan, 2011. "Girls take over: Long-term impacts of an early stage education intervention in the Philippines," IFPRI discussion papers 1144, International Food Policy Research Institute (IFPRI).

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