IDEAS home Printed from https://ideas.repec.org/a/mth/raee88/v6y2014i3p28-42.html
   My bibliography  Save this article

The Screening Hypothesis and the Returns to Schooling in Argentina

Author

Listed:
  • Harry Anthony Patrinos

    () (World Bank)

  • Maria Paula Savanti

    ()

Abstract

We conduct four tests of screening in education. We apply our methodology to labor market data from Argentina, using two points in time, a period during which the returns to schooling in Argentina increased. There do not appear to be significant increases associated with years of schooling that would represent the attainment of a primary or secondary certificate. The only signal that there might be screening occurs at 17 years of schooling which could be argued represents the attainment of a tertiary education degree. However, 15 years of schooling also represents a significant threshold in 2002. The returns to schooling are higher in the private sector. Much of the increase in the returns to schooling overall is due to the increase in the returns to tertiary education. The returns to complete university are higher in the private sector. This provides no evidence of screening since the private sector seeks to maximize profits and recognizes the higher productivity of the more educated. Overall, there is little evidence of screening driving the returns to schooling.

Suggested Citation

  • Harry Anthony Patrinos & Maria Paula Savanti, 2014. "The Screening Hypothesis and the Returns to Schooling in Argentina," Research in Applied Economics, Macrothink Institute, vol. 6(3), pages 28-42, September.
    • Handle: RePEc:mth:raee88:v:6:y:2014:i:3:p:28-42
    as

    Download full text from publisher

    File URL: http://www.macrothink.org/journal/index.php/rae/article/view/5157/5019
    Download Restriction: no
    File URL: http://www.macrothink.org/journal/index.php/rae/article/view/5157/5019
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jhon James Mora, 2003. "Sheepskin effects and screening in Colombia," Colombian Economic Journal, Universidad Nacional de Colombia -FCE - CID, April.
      • Jhon James Mora, 2003. "Sheepskin effects and screening in Colombia," Colombian Economic Journal, Academia Colombiana de Ciencias Economicas, Colegio Mayor de Nuestra Senora del Rosario, Pontificia Universidad Javeriana, Universidad de Antioquia, Universidad de los Andes, Universidad del Valle, Universidad Externado de Colombia, Universidad Nacional de Colombia, vol. 1(1), pages 95-108, December.
    2. Norbert R. Schady, 2003. "Convexity and Sheepskin Effects in the Human Capital Earnings Function: Recent Evidence for Filipino Men," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(2), pages 171-196, May.
    3. Layard, Richard & Psacharopoulos, George, 1974. "The Screening Hypothesis and the Returns to Education," Journal of Political Economy, University of Chicago Press, vol. 82(5), pages 985-998, Sept./Oct.
    4. Brown, Sarah & Sessions, John G., 1999. "Education and employment status: a test of the strong screening hypothesis in Italy," Economics of Education Review, Elsevier, vol. 18(4), pages 397-404, October.
    5. Skalli, Ali, 2007. "Are successive investments in education equally worthwhile? Endogenous schooling decisions and non-linearities in the earnings-schooling relationship," Economics of Education Review, Elsevier, vol. 26(2), pages 215-231, April.
    6. Galiani, Sebastian & Sanguinetti, Pablo, 2003. "The impact of trade liberalization on wage inequality: evidence from Argentina," Journal of Development Economics, Elsevier, vol. 72(2), pages 497-513, December.
    7. Arrow, Kenneth J., 1973. "Higher education as a filter," Journal of Public Economics, Elsevier, vol. 2(3), pages 193-216, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Olfindo, Rosechin, 2018. "Diploma as signal? Estimating sheepskin effects in the Philippines," International Journal of Educational Development, Elsevier, vol. 60(C), pages 113-119.
    2. Luisa Rosti & Chikara Yamaguchi & Carolina Castagnetti, 2005. "Educational Performance as Signalling Device: Evidence from Italy," Economics Bulletin, AccessEcon, vol. 9(4), pages 1-7.
    3. Nohora Y. Forero Ramírez & Manuel Ramírez Gómez, 2008. "Determinantes de los ingresos laborales de los graduados universitarios durante el período 2001-2004," Documentos de Trabajo 004591, Universidad del Rosario.
    4. 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.
    5. Inmaculada García-Mainar & Víctor M. Montuenga-Gómez, 2017. "Subjective educational mismatch and signalling in Spain," Documentos de Trabajo dt2017-03, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    6. Nakabayashi, Masaki, 2011. "Schooling, employer learning, and internal labor market effect: Wage dynamics and human capital investment in the Japanese steel industry, 1930-1960s," MPRA Paper 30597, University Library of Munich, Germany.
    7. Jhon James Mora, 2003. "Sheepskin effects and screening in Colombia," Colombian Economic Journal, Universidad Nacional de Colombia -FCE - CID, April.
      • Jhon James Mora, 2003. "Sheepskin effects and screening in Colombia," Colombian Economic Journal, Academia Colombiana de Ciencias Economicas, Colegio Mayor de Nuestra Senora del Rosario, Pontificia Universidad Javeriana, Universidad de Antioquia, Universidad de los Andes, Universidad del Valle, Universidad Externado de Colombia, Universidad Nacional de Colombia, vol. 1(1), pages 95-108, December.
    8. Miller, Paul W. & Mulvey, Charles & Martin, Nick, 2004. "A test of the sorting model of education in Australia," Economics of Education Review, Elsevier, vol. 23(5), pages 473-482, October.
    9. Nicolas Hérault & Rezida Zakirova, 2011. "Sheepskin Effects in the Returns to Education: Accounting for Enrolment and Completion Effects," Melbourne Institute Working Paper Series wp2011n04, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    10. Arnaud Chevalier & Colm Harmon & Ian Walker & Yu Zhu, 2004. "Does Education Raise Productivity, or Just Reflect it?," Economic Journal, Royal Economic Society, vol. 114(499), pages 499-517, November.
    11. Skalli, Ali, 2007. "Are successive investments in education equally worthwhile? Endogenous schooling decisions and non-linearities in the earnings-schooling relationship," Economics of Education Review, Elsevier, vol. 26(2), pages 215-231, April.
    12. Steve F Koch & Ssekabira Ntege, 2008. "Returns to Schooling: Skills Accumulation or Information Revelation?," Working Papers 87, Economic Research Southern Africa.
    13. SWATI Sharma, 2016. "Does Education Determine Employment: Peculiarities Of The Indian Labour Market," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 11(1), pages 164-180, April.
    14. Stanislav Avdeev, 2020. "Zero Returns To Higher Education: Evidence From A Natural Experiment," HSE Working papers WP BRP 236/EC/2020, National Research University Higher School of Economics.
    15. Arabsheibani, G. Reza & Rees, Hedley, 1998. "On the Weak vs Strong Version of the Screening Hypothesis: A Re-Examination of the P-Test for the U.K," Economics of Education Review, Elsevier, vol. 17(2), pages 189-192, April.
    16. Stepan Zemtsov & Vladimir Eremkin & Vera Barinova, 2015. "Factors of Attractiveness of the Leading Russian Universities Overview of Literature and Econometric Analysis of the Leading Universities," Educational Studies, Higher School of Economics, issue 4, pages 201-233.
    17. Lin Xiu & Morley Gunderson, 2013. "Credential Effects and the Returns to Education in China," LABOUR, CEIS, vol. 27(2), pages 225-248, June.
    18. Béatrice le Rhun & Olivier Monso, 2015. "De l'utilité d'obtenir son diplôme pour s'insérer : l'exemple des brevets de technicien supérieur," Économie et Statistique, Programme National Persée, vol. 478(1), pages 35-56.
    19. Habermalz, Steffen, 2003. "Job Matching and the Returns to Educational Signals," IZA Discussion Papers 726, Institute of Labor Economics (IZA).
    20. Brown, Sarah & Sessions, John G., 1999. "Education and employment status: a test of the strong screening hypothesis in Italy," Economics of Education Review, Elsevier, vol. 18(4), pages 397-404, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mth:raee88:v:6:y:2014:i:3:p:28-42. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Technical Support Office) The email address of this maintainer does not seem to be valid anymore. Please ask Technical Support Office to update the entry or send us the correct email address. General contact details of provider: http://www.macrothink.org/journal/index.php/rae .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.