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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
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    More about this item

    Keywords

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

    JEL classification:

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

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