Do employers care about which school I went to? : It depends. Independent upper-secondary schooling as a signal of ability.
Abstract: I investigate if employers sort job applicants based on information about whether the applicants attended a public or an independent upper-secondary school. I perform a stated choice experiment where real employers in Sweden are enrolled and asked to evaluate fictitious job candidates for a current job opening. I find no evidence of such signaling effects for candidates with a typical Swedish name. However, candidates with a Middle Eastern sounding name experience a probability of being invited to an interview that is 14-19 percentage points higher if their resume reveal that they went to an independent, in contrast to a public, school. I show that, under some assumptions, these outcomes can be explained by theories on labor market signaling. There exits very little empirical evidence on the relationship between school choice and sorting in the labor market. Consequently, these findings fills an important gap in our knowledge and brings new perspectives for educational policy.
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