Do Inclusive Education Policies Improve Employment Opportunities? Evidence from a Field Experiment

51 Pages Posted: 28 Dec 2020

See all articles by Jorge Agüero

Jorge Agüero

University of Connecticut - Department of Economics

Francisco Galarza

University of Wisconsin - Madison - Department of Agricultural & Applied Economics

Gustavo Yamada

Universidad del Pacifico

Abstract

In labor markets where disadvantaged students are discriminated against, meritbased college scholarships targeting these students could convey two opposing signals to employers. There is a positive signal reflecting the candidate's cognitive ability (talented in high-school and able to maintain a high GPA in college) as well as her soft skills (overcoming poverty). There is also a possible negative signal as the targeting of the scholarship indicates that the beneficiary comes from a disadvantaged household. We conduct a correspondence study to analyze the labor market impact of an inclusive education program. Beca 18 provides merit-based scholarships to talented poor students admitted to 3-year and 5-year colleges in Peru. We find that the positive signal dominates. Including information of being a scholarship recipient increases the likelihood of getting a callback for a job interview by 20%. However, the effect is much smaller in jobs and careers where the poor are under-represented, suggesting that the negative signal of the scholarship is not zero.

JEL Classification: C93, I23, J7, J15

Suggested Citation

Agüero, Jorge and Galarza, Francisco and Yamada, Gustavo, Do Inclusive Education Policies Improve Employment Opportunities? Evidence from a Field Experiment. IZA Discussion Paper No. 13972, Available at SSRN: https://ssrn.com/abstract=3755389

Jorge Agüero (Contact Author)

University of Connecticut - Department of Economics ( email )

365 Fairfield Way, U-1063
Storrs, CT 06269-1063
United States

Francisco Galarza

University of Wisconsin - Madison - Department of Agricultural & Applied Economics

427 Lorch St.
Madison, WI 53706-1503
United States

Gustavo Yamada

Universidad del Pacifico

Av. Salaverry 2020
Región Metropolitana
Lima 18, Lima 11
Peru

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