Diploma Effects

Diploma effects are usually defined as disproportionately large increases in returns to schooling after the completion of a certain number of years that usually entail a degree. Diploma effect is a notion that challenges or rejects the intrinsic value of education, including higher education. Diploma effects take place when employers preferably make hiring or promoting decisions favorably for individuals possessing diplomas or degrees over those without such credentials just because they have a degree, diploma, or certificate. Possession of a degree provides individuals the advantage of signaling to their prospective employer that they are more productive. This signaling effect is widely known as a sheepskin effect, the extra advantage coming out of the degree or diploma (the sheepskin!). Diploma effects remain an intriguing subject ...

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