Revisiting the Relationship between Ability and Sheepskin Effects of Schooling on Individual Earnings: The Case of Pakistan
Significant amount of recent research continues to produce evidence in support of the presence of sheepskin effects in returns to schooling both for developed and developing countries. However, researchers have not made many attempts to identify or empirically test the possible mechanisms that ma...
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| Format: | Article |
| Language: | English |
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Johar Education Society
2018-08-01
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| Series: | Pakistan Journal of Commerce and Social Sciences |
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| Online Access: | http://www.jespk.net/publications/433.pdf |
| _version_ | 1818496495780888576 |
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| author | Tayyeb Shabbir |
| author_facet | Tayyeb Shabbir |
| author_sort | Tayyeb Shabbir |
| collection | DOAJ |
| description | Significant amount of recent research continues to produce evidence in support of the
presence of sheepskin effects in returns to schooling both for developed and developing
countries. However, researchers have not made many attempts to identify or empirically
test the possible mechanisms that may generate such effects. A few noteworthy
exceptions are Flores-Lagunes and Light (2010) for the U. S., Riddle (2008) for Canada
and Shabbir & Ashraf (2011) and Shabbir (2013) for Pakistan.
Shabbir and Ashraf (2011) summarily reports that the sheepskin effects for rural Pakistan
persist in the face of controls for measures of innate and cognitive ability. The present
paper revisits this issue and adds value by presenting and discussing all of the relevant
empirical estimates in full detail. Further, the present analysis fully updates the review of
the literature as well as the various aspects of the pertinent debate surrounding the nature
of the sheepskin effects.
This study reconfirms that significant sheepskin effects exist for rural Pakistan for
diplomas obtained by completing primary, high school and perhaps also FA and BA
levels. Further, according to the detailed empirical regression results presented and
discussed in this paper, the sheepskin effects prove to be robust both to an inclusion of
measure of innate ability (Raven Progressive Matrices) and „cognitive‟ ability (specially
administrated tests of literacy and numeracy). This implies that sheepskin effects „signal‟
individual characteristics unrelated to these measures of ability. The findings have
significant policy implications about the nature of the private vs. social returns to
schooling |
| first_indexed | 2024-12-10T18:33:37Z |
| format | Article |
| id | doaj.art-5f049975d86f418a87ac6195a51c1b81 |
| institution | Directory Open Access Journal |
| issn | 1997-8553 2309-8619 |
| language | English |
| last_indexed | 2024-12-10T18:33:37Z |
| publishDate | 2018-08-01 |
| publisher | Johar Education Society |
| record_format | Article |
| series | Pakistan Journal of Commerce and Social Sciences |
| spelling | doaj.art-5f049975d86f418a87ac6195a51c1b812022-12-22T01:37:53ZengJohar Education SocietyPakistan Journal of Commerce and Social Sciences1997-85532309-86192018-08-01122419442Revisiting the Relationship between Ability and Sheepskin Effects of Schooling on Individual Earnings: The Case of PakistanTayyeb Shabbir0 California State UniversitySignificant amount of recent research continues to produce evidence in support of the presence of sheepskin effects in returns to schooling both for developed and developing countries. However, researchers have not made many attempts to identify or empirically test the possible mechanisms that may generate such effects. A few noteworthy exceptions are Flores-Lagunes and Light (2010) for the U. S., Riddle (2008) for Canada and Shabbir & Ashraf (2011) and Shabbir (2013) for Pakistan. Shabbir and Ashraf (2011) summarily reports that the sheepskin effects for rural Pakistan persist in the face of controls for measures of innate and cognitive ability. The present paper revisits this issue and adds value by presenting and discussing all of the relevant empirical estimates in full detail. Further, the present analysis fully updates the review of the literature as well as the various aspects of the pertinent debate surrounding the nature of the sheepskin effects. This study reconfirms that significant sheepskin effects exist for rural Pakistan for diplomas obtained by completing primary, high school and perhaps also FA and BA levels. Further, according to the detailed empirical regression results presented and discussed in this paper, the sheepskin effects prove to be robust both to an inclusion of measure of innate ability (Raven Progressive Matrices) and „cognitive‟ ability (specially administrated tests of literacy and numeracy). This implies that sheepskin effects „signal‟ individual characteristics unrelated to these measures of ability. The findings have significant policy implications about the nature of the private vs. social returns to schoolinghttp://www.jespk.net/publications/433.pdfhuman capital investmentsreturns to educationabilitysheepskin effectsearningsschoolingdeveloping countriesPakistan |
| spellingShingle | Tayyeb Shabbir Revisiting the Relationship between Ability and Sheepskin Effects of Schooling on Individual Earnings: The Case of Pakistan Pakistan Journal of Commerce and Social Sciences human capital investments returns to education ability sheepskin effects earnings schooling developing countries Pakistan |
| title | Revisiting the Relationship between Ability and Sheepskin Effects of Schooling on Individual Earnings: The Case of Pakistan |
| title_full | Revisiting the Relationship between Ability and Sheepskin Effects of Schooling on Individual Earnings: The Case of Pakistan |
| title_fullStr | Revisiting the Relationship between Ability and Sheepskin Effects of Schooling on Individual Earnings: The Case of Pakistan |
| title_full_unstemmed | Revisiting the Relationship between Ability and Sheepskin Effects of Schooling on Individual Earnings: The Case of Pakistan |
| title_short | Revisiting the Relationship between Ability and Sheepskin Effects of Schooling on Individual Earnings: The Case of Pakistan |
| title_sort | revisiting the relationship between ability and sheepskin effects of schooling on individual earnings the case of pakistan |
| topic | human capital investments returns to education ability sheepskin effects earnings schooling developing countries Pakistan |
| url | http://www.jespk.net/publications/433.pdf |
| work_keys_str_mv | AT tayyebshabbir revisitingtherelationshipbetweenabilityandsheepskineffectsofschoolingonindividualearningsthecaseofpakistan |