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An Examination of Sheepskin Effects Over Time

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  • Habermalz, Steffen

    (University of Mannheim)

Abstract

Previous empirical specifications are not flexible enough to capture the true pattern of sheepskin effects over time. If the quality of the match between the worker and the job contributes to earnings and if higher ability workers more easily reveal their true productivity, sheepskin effects will follow a concave pattern over time. Using the NLSY and measures of actual experience, a variety of specifications (including median regressions) confirm this pattern.

Suggested Citation

  • Habermalz, Steffen, 2003. "An Examination of Sheepskin Effects Over Time," IZA Discussion Papers 725, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp725
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    References listed on IDEAS

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    More about this item

    Keywords

    returns to education; sheepskin effects;

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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