Non-Linearities in Returns to Education in Libya
This paper presents evidence that returns to schooling in Libya are nonlinear. However, this evidence should not be taken as supporting the sheepskin effect. Although high-school graduation is associated with higher earnings over and above what is predicted by the linear model, other diploma years do not possess the same advantage when a spline function is used.When a step function is used, various years, some of which do not lead to a diploma, show high marginal returns.
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Volume (Year): 9 (2001)
Issue (Month): 2 ()
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References listed on IDEAS
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- Heywood, John S., 1994. "How widespread are sheepskin returns to education in the U.S.?," Economics of Education Review, Elsevier, vol. 13(3), pages 227-234, September.
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- Hungerford, Thomas & Solon, Gary, 1987. "Sheepskin Effects in the Returns to Education," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 175-177, February.
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- 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.
- 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.
- 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)
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