The Value of Postsecondary Credentials in the Labor Market: An Experimental Study

We study employers’ perceptions of postsecondary degrees using a field experiment. We randomly assign the sector (for-profit vs. public) and selectivity of institution to fictitious resumes and send them to real vacancy postings on a large online job board. We find that a bachelor’s degree in business from a for-profit “online” institution is 22 percent less likely to receive a callback than a similar degree from a non-selective public institution. For health jobs that do not require a certificate, we find that a certificate from a for-profit institution is 57 percent less likely to receive a callback than a similar certificate from a public community college. For reasons that differ by each set of jobs, we find no difference in callback rates by postsecondary sector for business jobs that do not have degree requirements and we also find no difference for health jobs that require a certificate and valid license. Bachelor’s degrees from selective public institutions are relatively more likely to receive callbacks from employers posting higher-salaried jobs, suggesting that employers value both college quality and the likelihood of a successful match when contacting job applicants.