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The Relative Returns to Education, Experience, and Attractiveness for Young Workers

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Listed:
  • Emily A. Beam
  • Joshua Hyman
  • Caroline Theoharides

Abstract

We conduct a randomized résumé audit study, simultaneously examining the returns to education, experience, and physical attractiveness among young workers applying for entry-level, formal sector jobs in a developing country context. Employers do not value postsecondary education without a degree. Postsecondary vocational training increases the likelihood of a callback but only for blue-collar occupations typically offered only to male workers. Work experience is valued across most occupations; however, among service-sector jobs with in-person customer interactions, attractive applicants receive 23% more callbacks, swamping the returns to experience. Our results can help young workers make optimal choices to ease their school-to-work transition and guide policy makers in the design of labor market programs to ensure youth have the skills and qualifications that employers demand.

Suggested Citation

  • 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.
    • Handle: RePEc:ucp:ecdecc:doi:10.1086/701232
    DOI: 10.1086/701232
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    Cited by:

    1. Hale, Galina & Regev, Tali & Rubinstein, Yona, 2023. "Do looks matter for an academic career in economics?," Santa Cruz Department of Economics, Working Paper Series qt8s25m320, Department of Economics, UC Santa Cruz.
    2. Grover,Arti Goswami & Imbruno,Michele, 2020. "Using Experimental Evidence to Inform Firm Support Programs in Developing Countries," Policy Research Working Paper Series 9461, The World Bank.
    3. Lippens, Louis & Vermeiren, Siel & Baert, Stijn, 2023. "The state of hiring discrimination: A meta-analysis of (almost) all recent correspondence experiments," European Economic Review, Elsevier, vol. 151(C).
    4. Piopiunik, Marc & Schwerdt, Guido & Simon, Lisa & Woessmann, Ludger, 2020. "Skills, signals, and employability: An experimental investigation," European Economic Review, Elsevier, vol. 123(C).
    5. Beam, Emily A., 2021. "Search costs and the determinants of job search," Labour Economics, Elsevier, vol. 69(C).
    6. Abubakr Saeed & Sidra Maqsood & Amir Rafique, 2019. "Color matters: field experiment to explore the impact of facial complexion in Pakistani labor market," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 24(3), pages 347-363, July.
    7. Hale, Galina & Regev, Tali & Rubinstein, Yona, 2023. "Do looks matter for an academic career in economics?," Journal of Economic Behavior & Organization, Elsevier, vol. 215(C), pages 406-420.
    8. Emmanuel Adu Boahen & Kwadwo Opoku, 2024. "Inequalities in labour market outcomes of school leavers: Does educational track matter?," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 26(1), pages 280-307, April.
    9. Yasser Razak Hussain & Pranab Mukhopadhyay, 2023. "How Much do Education, Experience, and Social Networks Impact Earnings in India? A Panel Data Analysis Disaggregated by Class, Gender, Caste and Religion," SAGE Open, , vol. 13(4), pages 21582440231, December.
    10. Paolo Abarcar & Caroline Theoharides, 2024. "Medical Worker Migration and Origin-Country Human Capital: Evidence from U.S. Visa Policy," The Review of Economics and Statistics, MIT Press, vol. 106(1), pages 20-35, January.
    11. Bedi, Arjun S. & Majilla, Tanmoy & Rieger, Matthias, 2018. "Gender Norms and the Motherhood Penalty: Experimental Evidence from India," IZA Discussion Papers 11360, Institute of Labor Economics (IZA).

    More about this item

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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