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Sheepskin effects in work behaviour

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  • Philip Trostel
  • Ian Walker

Abstract

Numerous studies have documented disproportionate increases in wage rates from receiving educational credentials, as opposed to from just years of education. This study shows 'sheepskin effects' in hours of work that are similar to the sheepskin effects in wage rates. Systematic sheepskin effects are found in labour-force participation and conditional hours of work, as well as in wage rates. Moreover, the sheepskin effects in hours of work are apparently not simply endogenous responses to the sheepskin effects in wage rates. Thus, sheepskin effects in earnings are much larger than those previously shown for wage rates. The results suggest that education is sorted more by work intentions than innate ability.

Suggested Citation

  • Philip Trostel & Ian Walker, 2004. "Sheepskin effects in work behaviour," Applied Economics, Taylor & Francis Journals, vol. 36(17), pages 1959-1966.
    • Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1959-1966
    DOI: 10.1080/0003684042000236057
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    1. Killingsworth, Mark R. & Heckman, James J., 1987. "Female labor supply: A survey," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 2, pages 103-204, Elsevier.
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    5. Pencavel, John, 1987. "Labor supply of men: A survey," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 1, pages 3-102, Elsevier.
    6. 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.
    7. 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.
    8. Arrow, Kenneth J., 1973. "Higher education as a filter," Journal of Public Economics, Elsevier, vol. 2(3), pages 193-216, July.
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    Cited by:

    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. 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.
    3. Aina, Carmen & Casalone, Giorgia, 2020. "Early labor market outcomes of university graduates: Does time to degree matter?," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).
    4. 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.
    5. Holford, Angus J., 2017. "Access to and Returns from Unpaid Graduate Internships," IZA Discussion Papers 10845, Institute of Labor Economics (IZA).
    6. Costas-Fernández, Julián & Morando, Greta & Holford, Angus, 2023. "The effect of foreign students in higher education on native students’ outcomes," European Economic Review, Elsevier, vol. 160(C).

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