This article calculates the sheepskin effect on wages in Cali’s labor market, where additional profitabiliTY on wages when possessing a high school degree is 25 percent and 12 percent for March and September of 2000, and 45 percent and 37 percent for the same months, respectively, when possessing a universiTY degree. The analysis of the diploma effect extends to the regression for income intervals since this approach is in agreement with the signaling and screening theory. The results obtained from the regression on income quantiles show that signaling and screening on the universiTY degree is a phenomenon that presents itself with higher intensiTY in Cali’s labor market, probably due to the heterogeneiTY in the qualiTY of the universiTY degrees.
