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Original Articles

Testing for sheepskin effects in earnings equations: evidence for five countries

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Pages 635-637 | Published online: 06 Oct 2010
 

Abstract

Using a dataset that allows consistent cross-country comparisons the non-linearity in a conventional earnings equation is tested with respect to schooling. The findings suggest that the 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.

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