Underemployment of college graduates: is doing anything better than doing nothing?

Abstract

Across low-income countries, limited prospects for high-skill employment and poverty push numerous college graduates into jobs which do not require a college degree. These types of experiences may be advantageous or detracting for the new graduates. To examine this issue, we conducted a field experiment in Burundi which elicited preferences of employers with respect to low-skill job experience of recent college graduates. We estimate the impact of signaling various types of low-skill experiences, such as working as a phone credit sales agent, a waiter, a security guard and other positions that do not necessitate a college degree, on the hiring interest of employers in a high-skill job. Results indicate that mentioning a low-skill experience on a resume increases by approximately 10% the hiring interest of employers. Furthermore, employers prefer job seekers with low-skill experience rather than individuals with no experience at all, irrespective of the quality of the job seeker.