A signal of (Train)ability? Grade repetition and hiring chances

This article contributes to the nascent literature on the effect of grade retention in school on later labor market success. A field experiment is conducted to rule out the endogeneity of both outcomes. More concretely, various treatments of grade retention are randomly assigned to fictitious resumes sent in application to real vacancies. Overall, grade retention does not significantly affect positive call-back by employers. However, when narrowing in on vacancies for occupations where on-the-job training is important, job candidates with a record of grade retention are 16% less likely to receive a positive reaction. This finding is consistent with Queuing theory. (c) 2021 Elsevier B.V. All rights reserved.

Automated summary

This study contributes to the literature by examining the impact of grade retention on later labor market success. The field experiment found that grade retention did not significantly affect positive call-back from employers overall, but job candidates with grade retention were less likely to receive positive reactions for occupations where on-the-job training is important.