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

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Listed:
  • Deming, David J.
  • Yuchtman, Noam
  • Abulafi, Amira
  • Goldin, Claudia
  • Katz, Lawrence F.

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.

Suggested Citation

  • Deming, David J. & Yuchtman, Noam & Abulafi, Amira & Goldin, Claudia & Katz, Lawrence F., 2016. "The value of postsecondary credentials in the labor market: an experimental study," LSE Research Online Documents on Economics 91512, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:91512
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    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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