AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
(Incorrect) Perceived Returns and Strategic Behavior among Talented Low-Income College Graduates
AEA Papers and Proceedings
vol. 113,
May 2023
(pp. 423–26)
Abstract
Job applicants use resumes to send signals to potential employers. Applicants are free to select the items that go in their resumes and are expected to include signals they perceive will help them achieve their goals and avoid those that they anticipate could hurt them. We show that 92 percent of beneficiaries of a highly selective scholarship for poor and talented students avoid listing this award when applying for jobs. This is consistent with beneficiaries perceiving a negative labor market return from sending that signal. A correspondence study shows instead that listing the scholarship increases callback rates by 20 percent.Citation
Agüero, Jorge M., Francisco Galarza, and Gustavo Yamada. 2023. "(Incorrect) Perceived Returns and Strategic Behavior among Talented Low-Income College Graduates." AEA Papers and Proceedings, 113: 423–26. DOI: 10.1257/pandp.20231059Additional Materials
JEL Classification
- D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
- D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
- J22 Time Allocation and Labor Supply
- J23 Labor Demand
- O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration