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Sheepskin Effects in the Returns to Education: Accounting for Enrolment and Completion Effects

Author

Listed:
  • Nicolas Hérault

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

  • Rezida Zakirova

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Abstract
This paper contributes to the literature by separately analysing the signalling (or sheepskin) effects of the enrolment in and the completion of vocational education and training as well as higher education. Moreover, we investigate the persistence of these sheepskin effects over time. We take advantage of the Longitudinal Surveys of Australian Youth, which contains comprehensive information about completed and uncompleted courses and subsequent labour market outcomes. We find that signalling effects form a substantial part of the total return to education but that they vary by type of course. In addition, we show that both course attendance and course completion contribute to the overall signalling effects.

Suggested Citation

  • Nicolas Hérault & Rezida Zakirova, 2011. "Sheepskin Effects in the Returns to Education: Accounting for Enrolment and Completion Effects," Melbourne Institute Working Paper Series wp2011n04, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2011n04
    as

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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2011n04.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Béatrice le Rhun & Olivier Monso, 2015. "De l'utilité d'obtenir son diplôme pour s'insérer : l'exemple des brevets de technicien supérieur," Économie et Statistique, Programme National Persée, vol. 478(1), pages 35-56.

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    More about this item

    Keywords

    Return to education; signalling effects; post-secondary education;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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