Underemployment of college graduates: is doing anything better than doing nothing?

Michel Armel Ndayikeza ()
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Michel Armel Ndayikeza: CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne

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Abstract: Across low-income countries, limited prospects for high-skill employment and poverty push numerous college graduates into jobs which do not require a college degree. These types of experiences may be advantageous or detracting for the new graduates. To examine this issue, we conducted a field experiment in Burundi which elicited preferences of employers with respect to low-skill job experience of recent college graduates. We estimate the impact of signaling various types of low-skill experiences, such as working as a phone credit sales agent, a waiter, a security guard and other positions that do not necessitate a college degree, on the hiring interest of employers in a high-skill job. Results indicate that mentioning a low-skill experience on a resume increases by approximately 10% the hiring interest of employers. Furthermore, employers prefer job seekers with low-skill experience rather than individuals with no experience at all, irrespective of the quality of the job seeker.

Keywords: Low-skill Jobs; Underemployment; Labor Demand; Job Search; Field Experiment; Incentivized Resume Rating (search for similar items in EconPapers)
Date: 2025-01-28
New Economics Papers: this item is included in nep-exp
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Published in Journal of Development Economics, 2025, 174, pp.103459. ⟨10.1016/j.jdeveco.2025.103459⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04957036

DOI: 10.1016/j.jdeveco.2025.103459

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