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College scholarships, poverty, signaling and employment opportunities: Evidence from a field experiment

Author

Listed:
  • Agüero, Jorge M.
  • Galarza Arellano, Francisco B.
  • Yamada, Gustavo

Abstract

We study the signaling effect of a college scholarship in a labor market where disadvantaged groups face discrimination. Using a correspondence (audit) study, we find that including information about being a scholarship recipient on a resume increases the likelihood of receiving a job interview callback by 20 %. However, the effect is much smaller for resume profiles featuring characteristics that are less common among low-income individuals. This pattern is consistent with the scholarship also conveying a negative socioeconomic signal to employers, helping explain why actual beneficiaries rarely include it on their resumes.

Suggested Citation

  • Agüero, Jorge M. & Galarza Arellano, Francisco B. & Yamada, Gustavo, 2026. "College scholarships, poverty, signaling and employment opportunities: Evidence from a field experiment," Labour Economics, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:labeco:v:99:y:2026:i:c:s0927537125001526
    DOI: 10.1016/j.labeco.2025.102828
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    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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