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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 labour 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, 2020. "A Signal of (Train)ability? Grade Repetition and Hiring Chances," GLO Discussion Paper Series 598, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:598
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    File URL: https://www.econstor.eu/bitstream/10419/222313/1/GLO-DP-0598.pdf
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    References listed on IDEAS

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    Cited by:

    1. Hugo Reis & Emilio Borghesan, 2022. "Learning Through Repetition? A Dynamic Evaluation of Grade Retention in Portugal," Working Papers w202220, Banco de Portugal, Economics and Research Department.
    2. Philippe Sterkens & Ralf Caers & Marijke De Couck & Michael Geamanu & Victor Van Driessche & Stijn Baert, 2021. "Costly Mistakes: Why and When Spelling Errors in Resumes Jeopardise Interview Chances," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 21/1020, Ghent University, Faculty of Economics and Business Administration.
    3. Neugebauer, Martin & Daniel, Annabell, 2021. "Higher Education Non-Completion, Employers, and Labor Market Integration: Experimental Evidence," SocArXiv evm74, Center for Open Science.
    4. Baert, Stijn & Herregods, Jolien & Sterkens, Philippe, 2024. "What does job applicants’ body art signal to employers?," Journal of Economic Behavior & Organization, Elsevier, vol. 217(C), pages 742-755.
    5. Simon ter Meulen, 2023. "Long-Term Effects of Grade Retention," CESifo Working Paper Series 10212, CESifo.

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    More about this item

    Keywords

    grade retention; hiring youth; training; signalling; 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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