Labor Market Opportunities of Private and Public Education in Colombia

Abstract

Colombia has presented high unemployment for the past decade which was worsened by the Covid-19 pandemic. Job inequality among the highly vs. poorly educated has sparked a debate whether employers treat candidates differently based on their high school institution. This experiment explores the present research question: Does graduating from a public or private high school affect a candidate's opportunities of getting employed in Colombia under the circumstances of Covid-19? To circumvent the quandary, a quantitative field experiment on a correspondence testing method was used to investigate minority outcomes in the labor market. To create a realistic representation of the actual employment situation of Colombia, CEOs and business managers of the top companies were part of the experiment. Results reflect differential treatment in labor opportunities favouring private school graduates. It was evident throughout the experiment that the effects of graduating institutions were not as relevant as the level of education. Applicants from public schools can overcome this hurdle by investing in observable skills to the employer, suggesting that educational training programs can contribute to the reduction of the inequality gap Colombia currently faces.