The Value of Postsecondary Credentials in the Labor Market: An Experimental Study
American Economic Review
vol. 106,
no. 3, March 2016
(pp. 778-806)
(Complimentary)
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. (JEL I23, I26, J24, J44, J63, M51)Citation
Deming, David J., Noam Yuchtman, Amira Abulafi, Claudia Goldin, and Lawrence F. Katz. 2016. "The Value of Postsecondary Credentials in the Labor Market: An Experimental Study." American Economic Review, 106 (3): 778-806. DOI: 10.1257/aer.20141757Additional Materials
JEL Classification
- I23 Higher Education; Research Institutions
- I26 Returns to Education
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- J44 Professional Labor Markets; Occupational Licensing
- J63 Labor Turnover; Vacancies; Layoffs
- M51 Personnel Economics: Firm Employment Decisions; Promotions