Sheepskin Effects in the Returns to Education

  title={Sheepskin Effects in the Returns to Education},
  author={Wan Ve and Chris},
  • Wan Ve, Chris
  • Published 1996
We test for non-linearities in the returns to education and the presence of sheepskin effects to see if a causality between education and earnings can be determined. If there are non-linearities and/or sheepskin effects, the screening hypothesis will be favoured over the human capital theory. The data set used is from a developing country, Guatemala, in an attempt to add to the existing empirical literature on the existence of sheepskin effects. 

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