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Underemployment of college graduates: is doing anything better than doing nothing?

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  • Ndayikeza, Michel Armel

Abstract

Across low-income countries, limited prospects for high-skill employment and poverty push numerous college graduates into jobs which do not require a college degree. These types of experiences may be advantageous or detracting for the new graduates. To examine this issue, we conducted a field experiment in Burundi which elicited preferences of employers with respect to low-skill job experience of recent college graduates. We estimate the impact of signaling various types of low-skill experiences, such as working as a phone credit sales agent, a waiter, a security guard and other positions that do not necessitate a college degree, on the hiring interest of employers in a high-skill job. Results indicate that mentioning a low-skill experience on a resume increases by approximately 10% the hiring interest of employers. Furthermore, employers prefer job seekers with low-skill experience rather than individuals with no experience at all, irrespective of the quality of the job seeker.

Suggested Citation

  • Ndayikeza, Michel Armel, 2025. "Underemployment of college graduates: is doing anything better than doing nothing?," Journal of Development Economics, Elsevier, vol. 174(C).
    • Handle: RePEc:eee:deveco:v:174:y:2025:i:c:s0304387825000100
    DOI: 10.1016/j.jdeveco.2025.103459
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    More about this item

    Keywords

    Low-skill jobs; Underemployment; Labor demand; Job search; Field experiment; Incentivized Resume Rating;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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