Scandinavian Working Papers in Economics

Working Paper Series,
Trade Union Institute for Economic Research

No 158: Sheepskin Effects in the Returns to Education: Evidence on Swedish Data

Jesper Antelius
Additional contact information
Jesper Antelius: Trade Union Institute for Economic Research, Postal: FIEF, Wallingatan 38, SE-111 24 Stockholm, Sweden

Abstract: The empirical labor literature often refers returns to specific credentials of education as sheepskin effects. Previous studies might suffer from potential flaws as they use an approach, which overlook the presence of an "education effect" from receipt of a diploma. This paper examines and reports evidence of sheepskin effects at both university level and at high school level, in the Swedish labor market. In contrast to previous US studies the paper considers and reports the existence of an "education effect" involved when estimating the sheepskin effect. The paper also reports evidence on diminishing sheepskin effects with tenure at the current firm.

Keywords: Returns to education; Sheepskin effects

JEL-codes: I20; I21

16 pages, April 4, 2000

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