The impact of university reputation on employment opportunities: Experimental evidence from Bolivia

Ricardo Nogales (), Pamela Córdova and Manuel Urquidi
Additional contact information
Pamela Córdova: Universidad Privada Boliviana, Bolivia
Manuel Urquidi: Inter-American Development Bank, Bolivia

The Economic and Labour Relations Review, 2020, vol. 31, issue 4, 524-542

Abstract: Higher education enrolment and graduation rates have increased rapidly inter-generationally across much of the world, offering employers the promise of more knowledgeable recruits and promising individuals new means of social advancement. In the case of Bolivia, the labour force is becoming more heterogeneous over time, which could imply positive effects induced by a closer match between labour supply and recruiters’ needs. However, we show that this is not the case. We revisit the transition mechanisms from college to the workplace, positing recruiters’ interpretations of educational credentials as a crucial determining factor for employability in the formal sector. In a two-branch correspondence study, 2848 fictitious CVs were sent to 1424 formal firms in the three main urban Bolivian areas. We find a large university reputation premium. Applicants from well-valued universities are around 40% more likely to receive a positive response – a 2.25 percentage point advantage from a 7.87% baseline likelihood. Thus, the increasingly heterogeneous labour force is generating additional informational frictions in the labour market, rather than promoting a more efficient matching process. JEL Codes: I25, J24, C93

Keywords: Bolivia; correspondence experiment; formal job opportunities; university reputation (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/1035304620962265 (text/html)

Related works:
Working Paper: The Impact of University Reputation on Employment Opportunities: Experimental Evidence from Bolivia (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:ecolab:v:31:y:2020:i:4:p:524-542

DOI: 10.1177/1035304620962265

Access Statistics for this article

More articles in The Economic and Labour Relations Review
Bibliographic data for series maintained by SAGE Publications ().