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

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  • Emily A. Beam
  • Joshua Hyman
  • Caroline Theoharides
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.

Suggested Citation

  • Emily A. Beam & Joshua Hyman & Caroline Theoharides, 2020. "The Relative Returns to Education, Experience, and Attractiveness for Young Workers," Economic Development and Cultural Change, University of Chicago Press, vol. 68(2), pages 391-428.
    • Handle: RePEc:ucp:ecdecc:doi:10.1086/701232
    DOI: 10.1086/701232
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    Cited by:

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    3. Grover,Arti Goswami & Imbruno,Michele, 2020. "Using Experimental Evidence to Inform Firm Support Programs in Developing Countries," Policy Research Working Paper Series 9461, The World Bank.
    4. Piopiunik, Marc & Schwerdt, Guido & Simon, Lisa & Woessmann, Ludger, 2020. "Skills, signals, and employability: An experimental investigation," European Economic Review, Elsevier, vol. 123(C).
    5. Lippens, Louis & Vermeiren, Siel & Baert, Stijn, 2023. "The state of hiring discrimination: A meta-analysis of (almost) all recent correspondence experiments," European Economic Review, Elsevier, vol. 151(C).
    6. Beam, Emily A., 2021. "Search costs and the determinants of job search," Labour Economics, Elsevier, vol. 69(C).
    7. Hale, Galina & Regev, Tali & Rubinstein, Yona, 2023. "Do looks matter for an academic career in economics?," Journal of Economic Behavior & Organization, Elsevier, vol. 215(C), pages 406-420.
    8. Yasser Razak Hussain & Pranab Mukhopadhyay, 2023. "How Much do Education, Experience, and Social Networks Impact Earnings in India? A Panel Data Analysis Disaggregated by Class, Gender, Caste and Religion," SAGE Open, , vol. 13(4), pages 21582440231, December.
    9. Bedi, Arjun S. & Majilla, Tanmoy & Rieger, Matthias, 2018. "Gender Norms and the Motherhood Penalty: Experimental Evidence from India," IZA Discussion Papers 11360, Institute of Labor Economics (IZA).

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    More about this item

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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