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The Stability Pattern of Sheepskin Effects and Its Implications for the Human Capital Theory--Screening Hypothesis Debate

Author

Listed:
  • Edward T. Gullason

    (Division of Social Sciences, Dowling College)

Abstract

Typically, the empirical presence of sheepskin effects in the returns to schooling has been used as evidence supporting the screening hypothesis. In this study, sheepskin effects are found to exist, but are not stable across individuals according to whether or not they found their accumulated schooling relevant for their occupations. Rate of return estimates on years of schooling between these two groups of individuals are not stable either. This study demonstrates for the first time that an empirical analysis of sheepskin effects provides evidence supporting the human capital theory in addition to the screening hypothesis.

Suggested Citation

  • Edward T. Gullason, 1999. "The Stability Pattern of Sheepskin Effects and Its Implications for the Human Capital Theory--Screening Hypothesis Debate," Eastern Economic Journal, Eastern Economic Association, vol. 25(2), pages 141-149, Spring.
    • Handle: RePEc:eej:eeconj:v:25:y:1999:i:2:p:141-149
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume25/V25N2P141_149.pdf
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    Citations

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    Cited by:

    1. Bauer, Thomas & Haisken-DeNew, John P & Dross, Patrick J, 2002. "Sheepskin Effects in Japan," CEPR Discussion Papers 3609, C.E.P.R. Discussion Papers.
    2. Thomas Bauer & John P. Haisken-DeNew & Patrick J. Dross, 2003. "Sheepskin Effects in Japan," RWI Discussion Papers 0005, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
    3. repec:zbw:rwidps:0005 is not listed on IDEAS
    4. Bitzan, John D., 2009. "Do sheepskin effects help explain racial earnings differences?," Economics of Education Review, Elsevier, vol. 28(6), pages 759-766, December.
    5. Feliciano, Zadia M., 2001. "The Skill and Economic Performance of Mexican Immigrants from 1910 to 1990," Explorations in Economic History, Elsevier, vol. 38(3), pages 386-409, July.
    6. Habermalz, Steffen, 2003. "An Examination of Sheepskin Effects Over Time," IZA Discussion Papers 725, Institute of Labor Economics (IZA).
    7. Christer Thrane, 2010. "Education and Earnings in the Tourism Industry – the Role of Sheepskin Effects," Tourism Economics, , vol. 16(3), pages 549-563, September.

    More about this item

    Keywords

    Human Capital; Occupation; Rate of Return; Schooling; Screening;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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