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The value of postsecondary credentials in the labor market: an experimental study

Deming, David J., Yuchtman, Noam, Abulafi, Amira, Goldin, Claudia and Katz, Lawrence F. (2016) The value of postsecondary credentials in the labor market: an experimental study. American Economic Review, 106 (3). pp. 778-806. ISSN 0002-8282

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Identification Number: 10.1257/aer.20141757

Abstract

We study employers' perceptions of the value of postsecondary degrees using a field experiment. We randomly assign the sector and selectivity of institutions to fictitious resumes and apply to real vacancy postings for business and health jobs on a large online job board. We find that a business bachelor's degree from a for-profit online institution is 22 percent less likely to receive a callback than one from a nonselective public institution. In applications to health jobs, we find that for-profit credentials receive fewer callbacks unless the job requires an external quality indicator such as an occupational license.

Item Type: Article
Official URL: https://www.aeaweb.org/journals/aer
Additional Information: © 2019 American Economic Association
Divisions: Management
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HC Economic History and Conditions
L Education > LB Theory and practice of education > LB2300 Higher Education
JEL classification: I - Health, Education, and Welfare > I2 - Education
I - Health, Education, and Welfare > I2 - Education > I23 - Higher Education Research Institutions
J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J24 - Human Capital; Skills; Occupational Choice; Labor Productivity
J - Labor and Demographic Economics > J4 - Particular Labor Markets > J44 - Professional Labor Markets and Occupations
J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J63 - Turnover; Vacancies; Layoffs
M - Business Administration and Business Economics; Marketing; Accounting > M5 - Personnel Economics > M51 - Firm Employment Decisions; Promotions (hiring, firing, turnover, part-time, temporary workers, seniority issues)
Sets: Departments > Management
Date Deposited: 04 Jan 2019 15:32
Last Modified: 20 Jul 2019 02:23
URI: http://eprints.lse.ac.uk/id/eprint/91512

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