Sheepskin Effects in the Returns to Education by Ethnic Group: Evidence from Northeastern Brazil
AbstractThe purpose of this paper is to examine inter-ethnic differences in the returns to education for the three main ethnic groups in the Metropolitan Region of Salvador (MRS), Bahia state, in Northeastern Brazil. Our results suggest that sheepskin effects take the traditional form of an additional return to the completion of a diploma for whites, whereas for blacks the additional return stems entirely from the sheepskin-like effect associated with admission to university. We show that it is possible to explain the observed pattern of inter-ethnic differences in the returns to education using a model of statistical discrimination that builds on the work of S. Lundberg and R. Startz and incorporates differences in the cost of acquiring an education that are usually associated with signaling models.
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Bibliographic InfoPaper provided by EconWPA in its series Labor and Demography with number 0510014.
Length: 25 pages
Date of creation: 13 Oct 2005
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Statistical Discrimination; Earnings; Brazil;
Other versions of this item:
- Jean-Louis ARCAND & Béatrice D'HOMBRES & Cl. PONDE AVENA, 2002. "Sheepskin Effects in the Returns to Education by Ethnic Group: Evidence from Northeastern Brazil," Working Papers 200226, CERDI.
- Jean-Louis ARCAND & Béatrice D'HOMBRES & Cl. PONDE AVENA, 2003. "Sheepskin Effects in the Returns to Education by Ethnic Group: Evidence from Northeastern Brazil," Working Papers 200326, CERDI.
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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