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Testing for sheepskin effects in earnings equations : evidence for five countries.

By Colm Harmon and Kevin Denny

Abstract

Using a dataset that allows consistent cross-country comparisons the non-linearity in a conventional earnings equation is tested with respect to schooling. The findings suggest that the assumption of linearity is not robust and that there are well-determined positive returns to the completion of educational levels. However, inferences are sensitive to the choice of functional form.Wages--Effect of education on;

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