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. Brown, Sarah & Sessions, John G., 2006. "Evidence on the relationship between firm-based screening and the returns to education," Economics of Education Review, Elsevier, vol. 25(5), pages 498-509, October.
    3. Kelly Bedard, 2001. "Human Capital versus Signaling Models: University Access and High School Dropouts," Journal of Political Economy, University of Chicago Press, vol. 109(4), pages 749-775, August.
    4. 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.
    5. Crespo, Anna Risi Vianna & Reis, Mauricio Cortez, 2009. "Sheepskin Effects and the Relationship between Earnings and Education: Analyzing the Evolution over Time in Brazil," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 63(3), August.
    6. 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, vol. 62(2), pages 237-240, February.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. Costas Azariadis & Allan Drazen, 1990. "Threshold Externalities in Economic Development," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(2), pages 501-526.
    12. Stiglitz, Joseph E, 1975. "The Theory of "Screening," Education, and the Distribution of Income," American Economic Review, American Economic Association, vol. 65(3), pages 283-300, June.
    13. Riley, John G, 1979. "Testing the Educational Screening Hypothesis," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 227-252, October.
    14. Bitzan, John D., 2009. "Do sheepskin effects help explain racial earnings differences?," Economics of Education Review, Elsevier, vol. 28(6), pages 759-766, December.
    15. Empar Pons, 2006. "Diploma Effects by Gender in the Spanish Labour Market," LABOUR, CEIS, vol. 20(1), pages 139-157, March.
    16. Arrow, Kenneth J., 1973. "Higher education as a filter," Journal of Public Economics, Elsevier, vol. 2(3), pages 193-216, July.
    17. Geraint Johnes & Jill Johnes (ed.), 2004. "International Handbook on the Economics of Education," Books, Edward Elgar Publishing, number 2847, March.
    18. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(3), pages 355-374.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stefanos Chanis & Constantinos Tsamadias, 2022. "Human Capital Theory vs. Screening Hypothesis: Evidence from the Greek Health Sector," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 72(3-4), pages 78-90, July-Dece.

    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. 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.
    2. Olfindo, Rosechin, 2018. "Diploma as signal? Estimating sheepskin effects in the Philippines," International Journal of Educational Development, Elsevier, vol. 60(C), pages 113-119.
    3. Luisa Rosti & Chikara Yamaguchi & Carolina Castagnetti, 2005. "Educational Performance as Signalling Device: Evidence from Italy," Economics Bulletin, AccessEcon, vol. 9(4), pages 1-7.
    4. 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.
    5. Jacek Liwiński & Francesco Pastore, 2021. "Are School-Provided Skills Useful at Work? Results of the Wiles Test," Research in Higher Education, Springer;Association for Institutional Research, vol. 62(1), pages 72-97, February.
    6. Nick Huntington-Klein, 2021. "Human capital versus signaling is empirically unresolvable," Empirical Economics, Springer, vol. 60(5), pages 2499-2531, May.
    7. Stefanos Chanis & Constantinos Tsamadias, 2022. "Human Capital Theory vs. Screening Hypothesis: Evidence from the Greek Health Sector," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 72(3-4), pages 78-90, July-Dece.
    8. Inmaculada Garc�a-Mainar & V�ctor M. Montuenga-G�mez, 2017. "Subjective educational mismatch and signalling in Spain," Documentos de Trabajo dt2017-03, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    9. 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.
    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. Mora Rodríguez, Jhon James & Muro, Juan, 2015. "On the size of sheepskin effects: A meta-analysis," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 9, pages 1-18.
    12. Feng, Andy & Graetz, Georg, 2017. "A question of degree: The effects of degree class on labor market outcomes," Economics of Education Review, Elsevier, vol. 61(C), pages 140-161.
    13. Habermalz, Steffen, 2003. "Job Matching and the Returns to Educational Signals," IZA Discussion Papers 726, Institute of Labor Economics (IZA).
    14. Bauer, Thomas K. & Dross, Patrick J. & de New, John, 2002. "Sheepskin Effects in Japan," IZA Discussion Papers 593, Institute of Labor Economics (IZA).
    15. Hussey, Andrew, 2012. "Human capital augmentation versus the signaling value of MBA education," Economics of Education Review, Elsevier, vol. 31(4), pages 442-451.
    16. Waldman, Michael, 2016. "The dual avenues of labor market signaling," Labour Economics, Elsevier, vol. 41(C), pages 120-134.
    17. Soumyanetra Munshi, 2014. "'Arranged' Marriage, Education, and Dowry: A Contract-Theoretic Perspective," Working Papers id:5696, eSocialSciences.
    18. repec:ebl:ecbull:v:9:y:2005:i:4:p:1-7 is not listed on IDEAS
    19. 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.
    20. repec:ucn:wpaper:10197/1104 is not listed on IDEAS
    21. Javier Nuñez & Andres Otero, 2005. "The choice of majors as a signaling device," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 20(1), pages 23-43, June.
    22. Nicolas H�rault & Rezida Zakirova, 2015. "Returns to education: accounting for enrolment and completion effects," Education Economics, Taylor & Francis Journals, vol. 23(1), pages 84-100, February.

    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.

    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 bibliographic 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.

    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 address (email available below). General contact details of provider: http://www.macrothink.org/journal/index.php/rae .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.