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

Jean-Louis Arcand () and Béatrice d'Hombres

Labor and Demography from EconWPA

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.

Keywords: Statistical Discrimination; Earnings; Brazil (search for similar items in EconPapers)
JEL-codes: J71 J31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu
Date: 2005-10-13
Note: Type of Document - pdf; pages: 25
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http://econwpa.repec.org/eps/lab/papers/0510/0510014.pdf (application/pdf)

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Working Paper: Sheepskin Effects in the Returns to Education by Ethnic Group: Evidence from Northeastern Brazil (2003) Downloads
Working Paper: Sheepskin Effects in the Returns to Education by Ethnic Group: Evidence from Northeastern Brazil (2002)
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