The Value of Postsecondary Credentials in the Labor Market: An Experimental Study
David J. Deming, Noam Yuchtman, Amira Abulafi, Claudia Goldin, Lawrence F. Katz
American Economic Review · 2016 · Volume 106 · Issue 3
Abstract
We study employers' perceptions of the value of postsecondary degrees using a field experiment. We randomly assign the sector and selectivity of institutions to fictitious resumes and apply to real vacancy postings for business and health jobs on a large online job board. We find that a business bachelor's degree from a for-profit online institution is 22 percent less likely to receive a callback than one from a nonselective public institution. In applications to health jobs, we find that for-profit credentials receive fewer callbacks unless the job requires an external quality indicator such as an occupational license. (JEL I23, I26, J24, J44, J63, M51)
Keywords
Higher Education, Research Institutions, Returns to Education, Human Capital, Skills, Occupational Choice, Labor Productivity, Professional Labor Markets, Occupational Licensing, Labor Turnover, Vacancies, Layoffs, Personnel Economics: Firm Employment Decisions, Promotions
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