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Sheepskin Effects and the Relationship Between Earnings and Education: Analyzing the Evolution Over Time in Brazil

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  • Anna Crespo
  • Maurício Cortez Reis

Abstract

This paper seeks to analyze trends in sheepskin effects and earnings-education relationship on the Brazilian labor market from 1982 to 2004. Using data from the Brazilian National Household Sample Survey (Pnad) are estimated earnings equations including linear years of schooling, and splines and discontinuous functions for completed degrees, as well as semi-parametric regressions. Empirical evidence reports a reduction in the sheepskin effects from 1982 to 2004, indicating that a diploma or degree completion in Brazil has been loosing its value over time. At the same time, the relationship between log earnings and education has become more convex. Similar trends are verified when the analysis is carried out separately by region.

Suggested Citation

  • Anna Crespo & Maurício Cortez Reis, 2007. "Sheepskin Effects and the Relationship Between Earnings and Education: Analyzing the Evolution Over Time in Brazil," Discussion Papers 1272, Instituto de Pesquisa Econômica Aplicada - IPEA.
    • Handle: RePEc:ipe:ipetds:1272
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    Cited by:

    1. 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.
    2. Zhimin Liu & Aftab Ahmed Memon & Woubshet Negussie & Haile Ketema, 2020. "Interpreting the Sustainable Development of Human Capital and the Sheepskin Effects in Returns to Higher Education: Empirical Evidence from Pakistan," Sustainability, MDPI, vol. 12(6), pages 1-16, March.
    3. 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.
    4. José Joaquín Brunner, 2013. "The Rationale for Higher Education Investment in Ibero-America," OECD Development Centre Working Papers 319, OECD Publishing.
    5. World Bank, 2011. "Work and Family : Latin American and Caribbean Women in Search of a New Balance [Trabajo & familia : mujeres de América Latina y el Caribe en busca de un nuevo equilibrio - Resumen ejecuivo (Vol. 2," World Bank Publications - Reports 12489, The World Bank Group.
    6. Franca, Maíra Penna & Machado, Danielle Carusi & Corseuil, Carlos Henrique, 2025. "Determinants of high returns and low rates of high school completion in Brazil," International Journal of Educational Development, Elsevier, vol. 114(C).
    7. Olfindo, Rosechin, 2018. "Diploma as signal? Estimating sheepskin effects in the Philippines," International Journal of Educational Development, Elsevier, vol. 60(C), pages 113-119.
    8. Reis, Mauricio Cortez & Ramos, Lauro, 2011. "Escolaridade dos Pais, Desempenho no Mercado de Trabalho e Desigualdade de Rendimentos," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 65(2), June.

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