Employers as key gatekeepers in school-to-work transitions: a review of experimental research using factorial surveys and correspondence tests

In this chapter, we review studies based on factorial surveys and correspondence tests that have examined a key moment of the school-to-work transition: the transition into a job. In the past 20 years, a growing literature has relied on the experimental method to understand how employers, including recruiters and human resource professionals, evaluate job applicants during the hiring process. Through a demand-side perspective, this literature has improved our understanding of the labour market returns to education, as well as the scarring effects of low educational performance and early career instability. The findings vary both across and within countries, and an increasing number of comparative designs are trying to capture the impact of institutional contexts and organizational policies on employers’ decision-making. We compare the strengths and weaknesses of factorial surveys and correspondence tests and conclude with a few suggestions that we hope will inspire future researchers to answer questions so far left unaddressed.