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The role of credentials in the Canadian labour market

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  • Ana M. Ferrer
  • W. Craig Riddell

Abstract

We study the role of credentials or "sheepskin effects" in the Canadian labour market. Sheepskin effects refer to increases in wages associated with the receipt of a degree after controlling for educational inputs such as years of schooling. We find strong evidence of sheepskin effects associated with graduation from high school, community college or trade school, and university. The importance of credentials increases with educational attainment, accounting for 30 per cent of the return to 16 years of schooling but more than half of returns above 16 years. Our evidence indicates that both years of schooling and degree completion influence earnings.

Suggested Citation

  • Ana M. Ferrer & W. Craig Riddell, 2002. "The role of credentials in the Canadian labour market," Canadian Journal of Economics, Canadian Economics Association, vol. 35(4), pages 879-905, November.
    • Handle: RePEc:cje:issued:v:35:y:2002:i:4:p:879-905
    DOI: 10.1111/0008-4085.00158
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    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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