Oseguera, Mariana. “Tearing the Paper Ceiling? Educational Credentials and Alternative Routes in Contemporary Labor Markets.”

Higher education credentials have long been central to organizations’ hiring practices and to job-seekers’ access to white-collar occupations. However, the rise of new technologies has increased access to skill-building resources and made practical skills and experiences increasingly important in the hiring process. In response, many employers in white-collar occupations have removed college degree requirements to signal their openness to candidates who have acquired skills through alternatives to higher education. Using a large-scale audit study with nearly 18,000 applications in software and marketing jobs, I investigate when employers are more likely to prioritize other signals of skill and fit over traditional college credentials. In particular, I examine differences in employers' responses to qualified non-degree holders based on employers' (a) stated preferences regarding college degrees and (b) alternative-routes candidates’ non-formal education signals of quality and fit and demographic characteristics, including years of relevant experience, current employer status, micro-credentials, gender, and race. The findings reveal that alternative-routes candidates received 28\% fewer callbacks than similarly experienced degree holders. Even when job postings did not require a college degree, degree holders still enjoyed the same advantage. However, this penalty disappeared when alternative-routes candidates had twice as much relevant experience (four years versus two years) as their degree-holding counterparts. Other skill signals had little effect on callbacks for non-degree holders. Lastly, while alternative-routes candidates did not experience different callback rates based on race and gender, the impact of degree status on callbacks varied across demographic groups depending on degree requirements and occupation categories. Overall, this study provides insights into the boundary conditions of credentialism and has implications for understanding firms’ human capital strategies, diversity in organizations, and the future of work.

Oseguera, Mariana. “Skill-Based Hiring Enhancing Matching Efficiency and Diversity in the Workforce?”

In this field experiment, I investigate how firms’ skill-based hiring approaches—such as eliminating degree requirements and signaling openness to candidates who have acquired skills via alternative routes—impact the applicant pool in terms of job-required skills, educational background, race, and gender. I partnered with two firms to conduct a reverse-audit methodology as they actively hire for positions in software, marketing, and office administration. Partnering companies agreed to randomly manipulate the degree requirement sections in their job postings across three treatments: (1) postings that explicitly require a relevant college degree; (2) postings that do not specify whether a degree is required; and (3) postings that explicitly state a focus on candidates’ skills and a willingness to consider individuals without a degree. The dependent variables in this study are (a) the diversity of the applicant pool in terms of educational background, gender, and race, (b) the quality of the employer-employee match, and (c) search costs. This project is currently in the data-gathering stage!

Oseguera, Mariana. “Social Responsibility as a Competitive Edge in Tight Labor Markets.”

This study examines how firms leverage social responsibility claims in response to labor market competition and the subsequent impact on wage responses to these markets. I analyzed nearly the entire population of online job postings in the United States from 2010 through 2021 from Lightcast (previously known as Burning Glass). I measure CSR claims using text analysis techniques and two validated dictionaries of words and expressions that convey CSR, prosociality, work meaningfulness, and corporate purpose beyond profit maximization. This data is merged with firm-level characteristics from Compustat and occupation-level data from ONET and the Bureau of Labor Statistics, comprising a sample of over 21 million observations. The findings of a panel analysis leveraging within-firm-occupation-metropolitan state area variation show no significant change in firms' use of social responsibility claims due to labor market conditions. However, firms that incorporate social responsibility claims in their job postings respond differently to competitive pressures by offering approximately four percent higher wages. This wage premium suggests that firms understand the importance of aligning their claims and substantiating them with tangible compensation offers. This alignment appears to be driven by the potential costs of appearing disingenuous, especially in industries with poor social responsibility reputations or among job seekers highly valuing social responsibility.