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Sheepskin Effects in the Returns to Education by Ethnic Group: Evidence from Northeastern Brazil

Author

Listed:
  • Jean-Louis Arcand

    (CERDI-CNRS, University of Auvergne & European Development Network)

  • Béatrice d'Hombres

    (CERDI-CNRS, University of Auvergne & University of Padua)

Abstract

The purpose of this paper is to examine inter-ethnic differences in the returns to education for the three main ethnic groups in the Metropolitan Region of Salvador (MRS), Bahia state, in Northeastern Brazil. Our results suggest that sheepskin effects take the traditional form of an additional return to the completion of a diploma for whites, whereas for blacks the additional return stems entirely from the sheepskin-like effect associated with admission to university. We show that it is possible to explain the observed pattern of inter-ethnic differences in the returns to education using a model of statistical discrimination that builds on the work of S. Lundberg and R. Startz and incorporates differences in the cost of acquiring an education that are usually associated with signaling models.

Suggested Citation

  • Jean-Louis Arcand & Béatrice d'Hombres, 2005. "Sheepskin Effects in the Returns to Education by Ethnic Group: Evidence from Northeastern Brazil," Labor and Demography 0510014, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpla:0510014
    Note: Type of Document - pdf; pages: 25
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    References listed on IDEAS

    as
    1. Lam, David & Schoeni, Robert F, 1993. "Effects of Family Background on Earnings and Returns to Schooling: Evidence from Brazil," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 710-740, August.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Statistical Discrimination; Earnings; Brazil;
    All these keywords.

    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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