IDEAS home Printed from https://ideas.repec.org/h/aec/ieed09/09-49.html
   My bibliography  Save this book chapter

On the size of sheepskin effects: A meta-analysis

In: Investigaciones de Economía de la Educación 9

Author

Listed:
  • Jhon James Mora Rodriguez

    (Universidad Icesi)

  • Juan Muro

    (Universidad de Alcala)

Abstract

We use information gathered from 122 studies on the effects of high school degrees on wages in different countries worldwide to carry out a meta-analysis that shows high school degrees have a statistically significant effect on wages of nearly 8%. This effect varies either when the review is made in countries away from the tropics or when factors such as sex, race, and continent are taken into account. Our results also reveal the existence of a publication bias that tends to increase the magnitude of the sheepskin effect. Nevertheless, when the former is included into the analysis the later remains statistically significant.

Suggested Citation

  • Jhon James Mora Rodriguez & Juan Muro, 2014. "On the size of sheepskin effects: A meta-analysis," Investigaciones de Economía de la Educación volume 9, in: Adela García Aracil & Isabel Neira Gómez (ed.), Investigaciones de Economía de la Educación 9, edition 1, volume 9, chapter 49, pages 939-948, Asociación de Economía de la Educación.
    • Handle: RePEc:aec:ieed09:09-49
    as

    Download full text from publisher

    File URL: http://repec.economicsofeducation.com/2014valencia/09-49.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    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. Daniel Münich & Jan Svejnar & Katherine Terrell, 2005. "Returns to Human Capital Under The Communist Wage Grid and During the Transition to a Market Economy," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 100-123, February.
    3. T.D. Stanley & Hristos Doucouliagos, 2010. "Picture This: A Simple Graph That Reveals Much Ado About Research," Journal of Economic Surveys, Wiley Blackwell, vol. 24(1), pages 170-191, February.
    4. Iamsiraroj, Sasi & Doucouliagos, Hristos, 2015. "Does growth attract FDI?," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 9, pages 1-35.
    5. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 83-116.
    6. Colegrave, Andrew D. & Giles, Margaret J., 2008. "School cost functions: A meta-regression analysis," Economics of Education Review, Elsevier, vol. 27(6), pages 688-696, December.
    7. Philip Trostel & Ian Walker, 2004. "Sheepskin effects in work behaviour," Applied Economics, Taylor & Francis Journals, vol. 36(17), pages 1959-1966.
    8. T.D. Stanley & Hristos Doucouliagos & Margaret Giles & Jost Heckemeyer & Robert Johnston & Patrice Laroche & Jon Nelson & Martin Paldam & Jacques Poot & Geoff Pugh & Randall Rosenberger & Katja Rost, 2013. "Meta-analysis of economics research reporting guidelines," Post-Print hal-02137661, HAL.
    9. Theil, Henri & Galvez, Janet, 1995. "On Latitude and Affluence: The Equatorial Grand Canyon," Empirical Economics, Springer, vol. 20(1), pages 163-166.
    10. John Luke Gallup & Jeffrey D. Sachs & Andrew D. Mellinger, 1998. "Geography and Economic Development," NBER Working Papers 6849, National Bureau of Economic Research, Inc.
    11. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    12. Maria Abreu & Henri L. F. de Groot & Raymond J. G. M. Florax, 2005. "A Meta‐Analysis of β‐Convergence: the Legendary 2%," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 389-420, July.
    13. Jasper M. Dalhuisen & Raymond J. G. M. Florax & JHenri L. F. de Groot & Peter Nijkamp, 2003. "Price and Income Elasticities of Residential Water Demand: A Meta-Analysis," Land Economics, University of Wisconsin Press, vol. 79(2), pages 292-308.
    14. Card, David & Krueger, Alan B, 1995. "Time-Series Minimum-Wage Studies: A Meta-analysis," American Economic Review, American Economic Association, vol. 85(2), pages 238-243, May.
    15. Thomas J. Kane & Cecilia E. Rouse & Douglas Staiger, 1999. "Estimating Returns to Schooling When Schooling is Misreported," Working Papers 798, Princeton University, Department of Economics, Industrial Relations Section..
    16. 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.
    17. David Card, 1994. "Earnings, Schooling, and Ability Revisited," Working Papers 710, Princeton University, Department of Economics, Industrial Relations Section..
    18. Stephen B. Jarrell & T. D. Stanley, 2004. "Declining Bias and Gender Wage Discrimination? A Meta-Regression Analysis," Journal of Human Resources, University of Wisconsin Press, vol. 39(3).
    19. Michael Spence, 2002. "Signaling in Retrospect and the Informational Structure of Markets," American Economic Review, American Economic Association, vol. 92(3), pages 434-459, June.
    20. Steffen Habermalz, 2006. "More Detail on the Pattern of Returns to Educational Signals," Southern Economic Journal, John Wiley & Sons, vol. 73(1), pages 125-135, July.
    21. Colin B. Begg & Jesse A. Berlin, 1988. "Publication Bias: A Problem in Interpreting Medical Data," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 151(3), pages 419-445, May.
    22. Iamsiraroj, Sasi & Doucouliagos, Hristos, 2015. "Does growth attract FDI?," Economics Discussion Papers 2015-18, Kiel Institute for the World Economy (IfW Kiel).
    23. Belman, Dale & Heywood, John S, 1991. "Sheepskin Effects in the Returns to Education: An Examination on Women and Minorities," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 720-724, November.
    24. 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.
    25. Iršová, Zuzana & Havránek, Tomáš, 2013. "Determinants of Horizontal Spillovers from FDI: Evidence from a Large Meta-Analysis," World Development, Elsevier, vol. 42(C), pages 1-15.
    26. David Card, 1994. "Earnings, Schooling, and Ability Revisited," Working Papers 710, Princeton University, Department of Economics, Industrial Relations Section..
    27. T. D. Stanley, 2008. "Meta‐Regression Methods for Detecting and Estimating Empirical Effects in the Presence of Publication Selection," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(1), pages 103-127, February.
    28. O. Ashenfelter & D. Card (ed.), 1999. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 3, number 3.
    29. Ana M. Ferrer & W. Craig Riddell, 2002. "The role of credentials in the Canadian labour market," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 35(4), pages 879-905, November.
    30. Jaeger, David A & Page, Marianne E, 1996. "Degrees Matter: New Evidence on Sheepskin Effects in the Returns to Education," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 733-740, November.
    31. Empar Pons, 2006. "Diploma Effects by Gender in the Spanish Labour Market," LABOUR, CEIS, vol. 20(1), pages 139-157, March.
    32. Thomas J. Kane & Cecilia Rouse & Douglas Staiger, 1999. "Estimating Returns to Schooling When Schooling is Misreported," Working Papers 798, Princeton University, Department of Economics, Industrial Relations Section..
    33. 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.
    34. T. D. Stanley, 2005. "Beyond Publication Bias," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 309-345, July.
    35. T.D. Stanley & Hristos Doucouliagos & Margaret Giles & Jost H. Heckemeyer & Robert J. Johnston & Patrice Laroche & Jon P. Nelson & Martin Paldam & Jacques Poot & Geoff Pugh & Randall S. Rosenberger & , 2013. "Meta-Analysis Of Economics Research Reporting Guidelines," Journal of Economic Surveys, Wiley Blackwell, vol. 27(2), pages 390-394, April.
    36. Gallup, John L. & Sachs, Jeffrey D. & Mellinger, Andrew, "undated". "Geography and Economic Development," Instructional Stata datasets for econometrics geodata, Boston College Department of Economics.
    37. Empar Pons & Juan Blanco, 2005. "Sheepskin Effects in the Spanish Labour Market: A Public-Private Sector Analysis," Education Economics, Taylor & Francis Journals, vol. 13(3), pages 331-347.
    38. Maria Abreu & Henri L.F. de Groot & Raymond J.G.M. Florax, 2005. "A Meta-Analysis of Beta-Convergence: The Legendary Two-Percent," Tinbergen Institute Discussion Papers 05-001/3, Tinbergen Institute.
    39. Belman, Dale & Heywood, John S, 1997. "Sheepskin Effects by Cohort: Implications of Job Matching in a Signaling Model," Oxford Economic Papers, Oxford University Press, vol. 49(4), pages 623-637, October.
    40. Jhon James Mora & Juan Muro, 2008. "Sheepskin effects by cohorts in Colombia," International Journal of Manpower, Emerald Group Publishing Limited, vol. 29(2), pages 111-121, May.
    41. John Gibson, 2000. "Sheepskin effects and the returns to education in New Zealand: Do they differ by ethnic groups?," New Zealand Economic Papers, Taylor & Francis Journals, vol. 34(2), pages 201-220.
    42. 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. Nazila Alinaghi & W. Robert Reed, 2016. "Meta-Analysis and Publication Bias: How Well Does the FAT-PET-PEESE Procedure Work?," Working Papers in Economics 16/26, University of Canterbury, Department of Economics and Finance.
    2. Mora, Jhon James & Cendales, Andres & Caicedo Carolina, 2016. "Diplomas y desajuste educativo en Cali a partir de avisos clasificados," Revista Lecturas de Economía, Universidad de Antioquia, CIE, issue 86, pages 179-198, December.
    3. Kun Andras Istvan, 2014. "The Sheepskin Effect In The Hungarian Labour Market 2010-2012: Analysis Of Data From The Hungarian Graduate Tracking System," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 492-499, July.
    4. Jhon J. Mora & Juan Muro, 2020. "Wage–employment elasticity: a meta-analysis referring to Colombia," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 47(6), pages 1495-1505, April.
    5. Das, Tirthatanmoy & Polachek, Solomon, 2019. "A New Strategy to Identify Causal Relationships: Estimating a Binding Average Treatment Effect," IZA Discussion Papers 12766, Institute of Labor Economics (IZA).
    6. Jhon-James Mora & Andres Cendales & Carolina Caicedo, 2017. "Diplomas and educational mismatch in Cali using classified advertisements," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 86, pages 179-198, Enero - J.

    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. Lin Xiu & Morley Gunderson, 2013. "Credential Effects and the Returns to Education in China," LABOUR, CEIS, vol. 27(2), pages 225-248, June.
    3. Alfonso Flores-Lagunes & Audrey Light, 2010. "Interpreting Degree Effects in the Returns to Education," Journal of Human Resources, University of Wisconsin Press, vol. 45(2).
    4. Stanley, T.D. & Doucouliagos, Chris & Jarrell, Stephen B., 2008. "Meta-regression analysis as the socio-economics of economics research," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(1), pages 276-292, February.
    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. Awaworyi Churchill, S. & Yew, S.L., 2017. "Are government transfers harmful to economic growth? A meta-analysis," Economic Modelling, Elsevier, vol. 64(C), pages 270-287.
    7. Alfonso Flores-Lagunes & Audrey Light, "undated". "Interpreting Sheepskin Effects in the Returns to Education," Working Papers 22, Princeton University, School of Public and International Affairs, Education Research Section..
    8. Olfindo, Rosechin, 2018. "Diploma as signal? Estimating sheepskin effects in the Philippines," International Journal of Educational Development, Elsevier, vol. 60(C), pages 113-119.
    9. Melissa Clark & David Jaeger, 2006. "Natives, the foreign-born and high school equivalents: new evidence on the returns to the GED," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(4), pages 769-793, October.
    10. Jhon James Mora & Juan Muro, 2007. "Diploma earning differences by gender in Colombia," Alcamentos 0802, Universidad de Alcalá, Departamento de Economía., revised 2008.
    11. Habermalz, Steffen, 2003. "Job Matching and the Returns to Educational Signals," IZA Discussion Papers 726, Institute of Labor Economics (IZA).
    12. Iamsiraroj, Sasi & Doucouliagos, Hristos, 2015. "Does growth attract FDI?," Economics Discussion Papers 2015-18, Kiel Institute for the World Economy (IfW Kiel).
    13. Petra Valickova & Tomas Havranek & Roman Horvath, 2015. "Financial Development And Economic Growth: A Meta-Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 29(3), pages 506-526, July.
    14. O’Mahony, Mary & Pastor, José Manuel & Peng, Fei & Serrano, Lorenzo & Hernández, Laura, 2012. "Output growth in the post‐compulsory education sector: the European experience," MPRA Paper 44016, University Library of Munich, Germany.
    15. NAKABAYASHI, Masaki, 2011. "Acquired Skills and Learned Abilities: Wage Dynamics of Blue-collar Workers in Internal Labor Markets," ISS Discussion Paper Series (series F) f153, Institute of Social Science, The University of Tokyo, revised Apr 2012.
    16. Stanley, T. D. & Doucouliagos, Chris & Steel, Piers, 2015. "Does ICT generate economic growth? A meta-regression analysis," Working Papers eco_2015_9, Deakin University, Department of Economics.
    17. Nick Huntington-Klein, 2021. "Human capital versus signaling is empirically unresolvable," Empirical Economics, Springer, vol. 60(5), pages 2499-2531, May.
    18. Iamsiraroj, Sasi & Doucouliagos, Hristos, 2015. "Does growth attract FDI?," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 9, pages 1-35.
    19. Stanley, T. D. & Doucouliagos, Chris, 2019. "Practical Significance, Meta-Analysis and the Credibility of Economics," IZA Discussion Papers 12458, Institute of Labor Economics (IZA).
    20. Ana Ferrer & W. Craig Riddell, 2008. "Education, credentials, and immigrant earnings," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 41(1), pages 186-216, February.

    More about this item

    Keywords

    Sheepskin effects; Meta-analysis; Publication bias;
    All these keywords.

    JEL classification:

    • C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    Statistics

    Access and download statistics

    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:aec:ieed09:09-49. 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: Domingo P. Ximénez-de-Embún (email available below). General contact details of provider: https://edirc.repec.org/data/aedeeea.html .

    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.