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Testing for Sheepskin Effects in Earnings Equations: Evidence for Five Countries

Kevin Denny and Colm Harmon

Working Papers from College Dublin, Department of Political Economy-

Abstract: Using a dataset that allows consistent cross-country comparisons we test the non-linearity in a conventional earnings equation with respect to schooling. The findings suggest that assumption of linearity is not robust and that there are well determined positive returns to the completion of educational levels. However inferences are sensitive to the choice of functional form.

Keywords: TESTS; INCOME; ESTIMATOR (search for similar items in EconPapers)
JEL-codes: C12 D31 (search for similar items in EconPapers)
Pages: 5 pages
Date: 1999
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Citations: View citations in EconPapers (13)

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