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

Emily Beam, Joshua Hyman and Caroline Theoharides

Economic Development and Cultural Change, 2020, vol. 68, issue 2, 391 - 428

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.

Date: 2020
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Working Paper: The Relative Returns to Education, Experience, and Attractiveness for Young Workers (2017)
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