How sheepskin effect is analogous to a signaling model

Reference no: EM13832009

Some economists maintain that the returns to additional years of education is actually quite small but that there is a substantial "sheepskin" effect whereby one receives a higher salary with the successful completion of degrees or the earning of diplomas (i.e., sheepskins).

a. Explain how the sheepskin effect is analogous to a signaling model.

b. Typically in the United States, a high school diploma is earned after 12 years of schooling while a college degree is earned after 16 years of school.

Reference no: EM13832009

Questions Cloud

Prepare a paper on becoming a master manager : Read "Becoming a Master Manager: A Competing Values Approach, By Robert E. Quinn (Author), et al

Discuss weaknesses that you consider the highest priority : Internal weaknesses are related to deficiencies in resources and capabilities that hinder an organization's ability to accomplish its mandate or mission. Write out and discuss 8-10 weaknesses that you consider the highest priority for the organizatio..

Value of loan to bank : This is an interest only balloon loan over 24 months at a rate of 8 percent. You see that the borrower still owes the lender $1000000 after 24 months

Explain effect on the profit and on balance sheet accounts : Explain the effect on the profit, and on the Balance Sheet accounts for July 2015 if. Depreciation was not allocated for the month.

How sheepskin effect is analogous to a signaling model : Explain how the sheepskin effect is analogous to a signaling model - Typically in the United States, a high school diploma is earned after 12 years of schooling while a college degree is earned after 16 years of school.

Explain the basic cost accumulation methods : These methods include job order costing, process costing, backflush costing, hybrid costing and joint and by-product costing. Further, explanations of the most common costs that companies must plan for and control are included, such as direct labo..

Determine how your business would protect itself : Determine how your business would protect itself from a discharge of the debt identified in the case. Brief the facts of the case and assume your boss is seeking your opinions as on the discharge issue - argue both sides of the issue.

Effectiveness of a performance management system : Describe the five criteria for effectiveness of a performance management system and summarize how Google's approach to performance management meets these criteria

User Account

All Pages