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In: Economics

Several researchers have found evidence of sheepskin effects, in which the labor market return to twelfth...

Several researchers have found evidence of sheepskin effects, in which the labor market return to twelfth grade is higher than the return to eleventh grade and the return to the fourth year of college is higher than the return to the third year of college. Why does this evidence of sheepskin effects bolster the screening explanation for the relationship between education and earnings?

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