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A signal of (Train)ability? Grade repetition and hiring chances

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  • Baert, Stijn
  • Picchio, Matteo

Abstract

This article contributes to the nascent literature on the effect of grade retention in school on later labor market success. A field experiment is conducted to rule out the endogeneity of both outcomes. More concretely, various treatments of grade retention are randomly assigned to fictitious résumés sent in application to real vacancies. Overall, grade retention does not significantly affect positive call-back by employers. However, when narrowing in on vacancies for occupations where on-the-job training is important, job candidates with a record of grade retention are 16% less likely to receive a positive reaction. This finding is consistent with Queuing theory.

Suggested Citation

  • Baert, Stijn & Picchio, Matteo, 2021. "A signal of (Train)ability? Grade repetition and hiring chances," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 867-878.
  • Handle: RePEc:eee:jeborg:v:188:y:2021:i:c:p:867-878
    DOI: 10.1016/j.jebo.2021.06.010
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    More about this item

    Keywords

    Grade retention; Hiring youth; Training; Signaling; Queuing;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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