IDEAS home Printed from https://ideas.repec.org/a/sae/ecolab/v31y2020i4p524-542.html
   My bibliography  Save this article

The impact of university reputation on employment opportunities: Experimental evidence from Bolivia

Author

Listed:
  • Ricardo Nogales

    (University of Oxford, UK; Universidad Privada Boliviana, Bolivia)

  • Pamela Córdova

    (Universidad Privada Boliviana, Bolivia)

  • Manuel Urquidi

    (Inter-American Development Bank, Bolivia)

Abstract

Higher education enrolment and graduation rates have increased rapidly inter-generationally across much of the world, offering employers the promise of more knowledgeable recruits and promising individuals new means of social advancement. In the case of Bolivia, the labour force is becoming more heterogeneous over time, which could imply positive effects induced by a closer match between labour supply and recruiters’ needs. However, we show that this is not the case. We revisit the transition mechanisms from college to the workplace, positing recruiters’ interpretations of educational credentials as a crucial determining factor for employability in the formal sector. In a two-branch correspondence study, 2848 fictitious CVs were sent to 1424 formal firms in the three main urban Bolivian areas. We find a large university reputation premium. Applicants from well-valued universities are around 40% more likely to receive a positive response – a 2.25 percentage point advantage from a 7.87% baseline likelihood. Thus, the increasingly heterogeneous labour force is generating additional informational frictions in the labour market, rather than promoting a more efficient matching process. JEL Codes: I25, J24, C93

Suggested Citation

  • Ricardo Nogales & Pamela Córdova & Manuel Urquidi, 2020. "The impact of university reputation on employment opportunities: Experimental evidence from Bolivia," The Economic and Labour Relations Review, , vol. 31(4), pages 524-542, December.
  • Handle: RePEc:sae:ecolab:v:31:y:2020:i:4:p:524-542
    DOI: 10.1177/1035304620962265
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1035304620962265
    Download Restriction: no

    File URL: https://libkey.io/10.1177/1035304620962265?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Nunley, John M. & Pugh, Adam & Romero, Nicholas & Seals, R. Alan, 2016. "College major, internship experience, and employment opportunities: Estimates from a résumé audit," Labour Economics, Elsevier, vol. 38(C), pages 37-46.
    2. Arteaga, Carolina, 2018. "The effect of human capital on earnings: Evidence from a reform at Colombia's top university," Journal of Public Economics, Elsevier, vol. 157(C), pages 212-225.
    3. Galarza, Francisco B. & Yamada, Gustavo, 2014. "Labor Market Discrimination in Lima, Peru: Evidence from a Field Experiment," World Development, Elsevier, vol. 58(C), pages 83-94.
    4. Justine Hastings & Christopher A. Neilson & Seth D. Zimmerman, 2015. "The Effects of Earnings Disclosure on College Enrollment Decisions," NBER Working Papers 21300, National Bureau of Economic Research, Inc.
    5. Emmanuel Duguet & Pascale Petit, 2005. "Hiring discrimination in the French financial sector: an econometric analysis on field experiment data," Annals of Economics and Statistics, GENES, issue 78, pages 79-102.
    6. Bailly, Franck, 2008. "The role of employers' beliefs in the evaluation of educational output," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(3), pages 959-968, June.
    7. David J. Deming & Noam Yuchtman & Amira Abulafi & Claudia Goldin & Lawrence F. Katz, 2016. "The Value of Postsecondary Credentials in the Labor Market: An Experimental Study," American Economic Review, American Economic Association, vol. 106(3), pages 778-806, March.
    8. Alison L. Booth & Andrew Leigh & Elena Varganova, 2012. "Does Ethnic Discrimination Vary Across Minority Groups? Evidence from a Field Experiment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 74(4), pages 547-573, August.
    9. Ricardo Nogales & Pamela Córdova & Manuel Urquidi, 2019. "On the relationship between labor market policies and outcomes in Bolivia: A search and matching approach," Estudios de Economia, University of Chile, Department of Economics, vol. 46(1), pages 61-87, June.
    10. Marianne Bertrand & Sendhil Mullainathan, 2004. "Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination," American Economic Review, American Economic Association, vol. 94(4), pages 991-1013, September.
    11. Bonilla-Mejía, Leonardo & Bottan, Nicolas L. & Ham, Andrés, 2019. "Information policies and higher education choices experimental evidence from Colombia," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 83(C).
    12. Franck Bailly, 2008. "The role of employers’ beliefs in the evaluation of educational output," Post-Print hal-02453513, HAL.
    13. Jorge Rodríguez & Sergio Urzúa & Loreto Reyes, 2016. "Heterogeneous Economic Returns to Post-Secondary Degrees: Evidence from Chile," Journal of Human Resources, University of Wisconsin Press, vol. 51(2), pages 416-460.
    14. Kaas Leo & Manger Christian, 2012. "Ethnic Discrimination in Germany’s Labour Market: A Field Experiment," German Economic Review, De Gruyter, vol. 13(1), pages 1-20, February.
    15. repec:adr:anecst:y:2005:i:78 is not listed on IDEAS
    16. W. Bentley MacLeod & Evan Riehl & Juan E. Saavedra & Miguel Urquiola, 2017. "The Big Sort: College Reputation and Labor Market Outcomes," American Economic Journal: Applied Economics, American Economic Association, vol. 9(3), pages 223-261, July.
    17. repec:hrv:faseco:30367409 is not listed on IDEAS
    18. W. Bentley MacLeod & Miguel Urquiola, 2015. "Reputation and School Competition," American Economic Review, American Economic Association, vol. 105(11), pages 3471-3488, November.
    19. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    20. repec:adr:anecst:y:2005:i:78:p:04 is not listed on IDEAS
    21. Zhou, Xiangyi & Zhang, Jie & Song, Xuetao, 2013. "Gender Discrimination in Hiring: Evidence from 19,130 Resumes in China," MPRA Paper 43543, University Library of Munich, Germany.
    22. Banerjee, Abhijit & Bertrand, Marianne & Datta, Saugato & Mullainathan, Sendhil, 2009. "Labor market discrimination in Delhi: Evidence from a field experiment," Journal of Comparative Economics, Elsevier, vol. 37(1), pages 14-27, March.
    23. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, Oxford University Press, vol. 87(3), pages 355-374.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gaddis, S. Michael, 2018. "An Introduction to Audit Studies in the Social Sciences," SocArXiv e5hfc, Center for Open Science.
    2. David Neumark, 2018. "Experimental Research on Labor Market Discrimination," Journal of Economic Literature, American Economic Association, vol. 56(3), pages 799-866, September.
    3. Chowdhury, Shyamal & Ooi, Evarn & Slonim, Robert, 2017. "Racial discrimination and white first name adoption: a field experiment in the Australian labour market," Working Papers 2017-15, University of Sydney, School of Economics.
    4. Baert, Stijn, 2017. "Hiring Discrimination: An Overview of (Almost) All Correspondence Experiments Since 2005," GLO Discussion Paper Series 61, Global Labor Organization (GLO).
    5. Bertrand, Marianne & Duflo, Esther, 2016. "Field Experiments on Discrimination," CEPR Discussion Papers 11123, C.E.P.R. Discussion Papers.
    6. Francisco B. Galarza, 2017. "Trust and Trustworthiness in College: An Experimental Analysis," Working Papers 17-03, Centro de Investigación, Universidad del Pacífico.
    7. Piopiunik, Marc & Schwerdt, Guido & Simon, Lisa & Woessmann, Ludger, 2020. "Skills, signals, and employability: An experimental investigation," European Economic Review, Elsevier, vol. 123(C).
    8. Valfort, Marie-Anne, 2020. "Anti-Muslim discrimination in France: Evidence from a field experiment," World Development, Elsevier, vol. 135(C).
    9. Matthieu Manant & Serge Pajak & Nicolas Soulié, 2019. "Can social media lead to labor market discrimination? Evidence from a field experiment," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 28(2), pages 225-246, April.
    10. Emily A. Beam & Joshua Hyman & Caroline Theoharides, 2020. "The Relative Returns to Education, Experience, and Attractiveness for Young Workers," Economic Development and Cultural Change, University of Chicago Press, vol. 68(2), pages 391-428.
    11. Chowdhury, Shyamal & Ooi, Evarn & Slonim, Robert, 2020. "Racial Discrimination and White First Name Adoption: Evidence from a Correspondence Study in the Australian Labour Market," IZA Discussion Papers 13208, Institute of Labor Economics (IZA).
    12. Rich, Judy, 2014. "What Do Field Experiments of Discrimination in Markets Tell Us? A Meta Analysis of Studies Conducted since 2000," IZA Discussion Papers 8584, Institute of Labor Economics (IZA).
    13. Button, Patrick & Walker, Brigham, 2020. "Employment discrimination against Indigenous Peoples in the United States: Evidence from a field experiment," Labour Economics, Elsevier, vol. 65(C).
    14. Eva O. Arceo-Gomez & Raymundo M. Campos-Vazquez, 2014. "Race and Marriage in the Labor Market: A Discrimination Correspondence Study in a Developing Country," American Economic Review, American Economic Association, vol. 104(5), pages 376-380, May.
    15. Baert, By Stijn & Neyt, Brecht & Siedler, Thomas & Tobback, Ilse & Verhaest, Dieter, 2021. "Student internships and employment opportunities after graduation: A field experiment," Economics of Education Review, Elsevier, vol. 83(C).
    16. Tjaden, Jasper Dag & Schwemmer, Carsten & Khadjavi, Menusch, 2018. "Ride with Me - Ethnic Discrimination, Social Markets and the Sharing Economy," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 418-432.
    17. repec:cep:cverdp:012 is not listed on IDEAS
    18. Galarza, Francisco B. & Yamada, Gustavo, 2014. "Labor Market Discrimination in Lima, Peru: Evidence from a Field Experiment," World Development, Elsevier, vol. 58(C), pages 83-94.
    19. Weichselbaumer, Doris, 2015. "Discrimination against Migrants in Austria: An Experimental Study," IZA Discussion Papers 9354, Institute of Labor Economics (IZA).
    20. Maitreyi Bordia Das, 2016. "All in my Head? The Play of Exclusion and Discrimination in the Labor Market," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 7(02), pages 1-20, June.
    21. Richard Chisik, 2015. "Job market signalling, stereotype threat and counter‐stereotypical behaviour," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(1), pages 155-188, February.

    More about this item

    Keywords

    Bolivia; correspondence experiment; formal job opportunities; university reputation;
    All these keywords.

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ecolab:v:31:y:2020:i:4:p:524-542. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.