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

21 Pages Posted: 27 Mar 2011

See all articles by Nicolas Herault

Nicolas Herault

University of Melbourne - Melbourne Institute: Applied Economic & Social Research

Rezida Zakirova

Monash University, Department of Economics; Melbourne Institute

Date Written: March 2011

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.

Keywords: Return to education, signalling effects, post-secondary education

JEL Classification: I20, J31

Suggested Citation

Herault, Nicolas and Zakirova, Rezida, Sheepskin Effects in the Returns to Education: Accounting for Enrolment and Completion Effects (March 2011). Melbourne Institute Working Paper No. 4/11, Available at SSRN: https://ssrn.com/abstract=1792986 or http://dx.doi.org/10.2139/ssrn.1792986

Nicolas Herault (Contact Author)

University of Melbourne - Melbourne Institute: Applied Economic & Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

HOME PAGE: http://www.findanexpert.unimelb.edu.au/researcher/person125238.html

Rezida Zakirova

Monash University, Department of Economics ( email )

Australia

Melbourne Institute ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia
+61383442183 (Phone)
+61383442111 (Fax)

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