Convexity and Sheepskin Effects in the Human Capital Earnings Function : Recent Evidence for Filipino Men

Much attention has been paid to the issue of possible nonlinearities in the relationship between log wages and schooling in the literature on both the United States and developing countries. The author uses data from a recent household survey for t...

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Bibliographic Details
Main Author:	Schady, Norbert R.
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ADDITION ADMINISTRATIVE DATA AGED ATTENDING SCHOOL BASIC EDUCATION COMPOSITION COSTS OF EDUCATION DEVELOPING COUNTRIES EDUCATION LEVEL EDUCATION LEVELS EMPIRICAL STUDIES EMPLOYMENT ENGINEERING ENROLLMENT ENROLLMENT RATE ENROLLMENT RATES FORMAL EDUCATION FRACTIONS GIRLS GROSS ENROLLMENT GROSS ENROLLMENT RATES GROSS ENROLLMENT RATIO GROSS ENROLLMENT RATIOS HIGH ENROLLMENT HOUSEHOLD INCOME HOUSEHOLD SURVEYS HOUSING INNOVATION LABOR FORCE LABOR MARKET LEARNING LEVELS OF EDUCATION LITERATURE PAPERS PARENTS POSITIVE IMPACT POVERTY REDUCTION PRIMARY EDUCATION PRIMARY SCHOOL PRIMARY SCHOOLING PRIVATE COSTS PRIVATE SECTOR PUBLIC SECTOR QUALITY EDUCATION QUALITY OF EDUCATION RATES OF RETURN RECENT EVIDENCE REPETITION REPETITION RATES RURAL AREAS SCHOOLING SECONDARY EDUCATION SIBLINGS SIGNIFICANT IMPACT SPEAKING SPORTS TEACHER TEACHER SALARIES TEACHERS TEACHING TEACHING MATERIALS TERTIARY EDUCATION UNIVERSITY EDUCATION URBAN AREAS VOCATIONAL TRAINING WORKERS WORKING HOURS
Online Access:	http://documents.worldbank.org/curated/en/2001/03/1047467/convexity-sheepskin-effects-human-capital-earnings-function-recent-evidence-filipino-men http://hdl.handle.net/10986/19688

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Summary:	Much attention has been paid to the issue of possible nonlinearities in the relationship between log wages and schooling in the literature on both the United States and developing countries. The author uses data from a recent household survey for the Philippines, the 1998 Annual Poverty Indicator Survey, to test the fit of the log-linear specification for Filipino men. He presents results based on various estimation strategies, including spline regressions and semi-parametric regressions with a large number of dummy variables for years of schooling and experience. He concludes that: 1) There appear to be large differences between rates of return to education across different levels in the Philippines. The wage premia for both primary and secondary education are significantly smaller than those for tertiary education. 2) Within each level - primary, secondary, and university - the last year of schooling is disproportionately rewarded in higher wages. That is, there appear to be clear sheepskin effects associated with graduation.

Convexity and Sheepskin Effects in the Human Capital Earnings Function : Recent Evidence for Filipino Men

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