Education and Earnings in the Tourism Industry – the Role of Sheepskin Effects

Abstract

This study is the first to report on sheepskin effects in the tourism industry; that is, on the earnings returns to educational degrees net of the returns to accumulated years of schooling. The results show statistically and economically significant sheepskin effects, with the returns to educational degrees clearly exceeding the returns to years of schooling for both male and female employees. Both human capital and sorting explanations of this observation are discussed.