Signaling Specific Skills and the Labor Market of College Graduates

Matias Busso, Sebastián Montaño () and Juan Munoz-Morales
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Sebastián Montaño: University of Maryland

No 16449, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We use census-like data and a regression discontinuity design to study the labor market impacts of a signal provided by a government-sponsored award given to top-performing students on a nationwide college exit exam in Colombia. Students who can signal their high level of specific skills earn seven to ten percent more than identical students lacking such a signal. The signal allows workers to find jobs in more productive firms and sectors that better use their skills. The positive returns persist for up to five years. The signal favors workers from less advantaged groups who enter the market with weaker signals.

Keywords: signaling; skills; wage returns; awards; college reputation; Colombia (search for similar items in EconPapers)
JEL-codes: D80 J20 J24 J31 J44 O15 (search for similar items in EconPapers)
Pages: 78 pages
Date: 2023-09
New Economics Papers: this item is included in nep-lam and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Signaling Specific Skills and the Labor Market of College Graduates (2023)
Working Paper: Signaling Specific Skills and the Labor Market of College Graduates (2023)
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