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(Incorrect) Perceived Returns and Strategic Behavior among Talented Low-Income College Graduates

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  • Jorge M. Agüero
  • Francisco Galarza
  • Gustavo Yamada

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.

Suggested Citation

  • Jorge M. Agüero & Francisco Galarza & Gustavo Yamada, 2023. "(Incorrect) Perceived Returns and Strategic Behavior among Talented Low-Income College Graduates," AEA Papers and Proceedings, American Economic Association, vol. 113, pages 423-426, May.
    • Handle: RePEc:aea:apandp:v:113:y:2023:p:423-26
    DOI: 10.1257/pandp.20231059
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    References listed on IDEAS

    as
    1. Aguero, Jorge M. & Galarza, Francisco & Yamada, Gustavo, 2020. "Do Inclusive Education Policies Improve Employment Opportunities? Evidence from a Field Experiment," IZA Discussion Papers 13972, Institute of Labor Economics (IZA).
    2. Raffi E. García & William A. Darity Jr., 2022. "Self-Reporting Race in Small Business Loans: A Game-Theoretic Analysis of Evidence from PPP Loans in Durham, NC," AEA Papers and Proceedings, American Economic Association, vol. 112, pages 299-302, May.
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    More about this item

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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