Does Certification Increase Returns to Human Capital? A Field Experiment in India

India has experienced a fourfold increase in tertiary enrollment over two decades, which has coincided with high rates of unemployment for college graduates. In particular, it is difficult for students to convey information about their human capital to employers if they graduate from colleges that are perceived to be of low quality. As a result, standardized exit exams created by private companies have become widespread. Such certification can improve labor market outcomes by allowing potential employees to credibly indicate their level of competence. This project studies the impact of certification on students entering the labor market as well as on employers. It has three components: a) a pilot RCT that studies the impact of student certification on employment outcomes, b) a full-scale audit study RCT that measures the impact of certification on hiring decisions, particularly in relation to gender discrimination. and c) exploratory work for an RCT that studies whether using certification to select new employees increases firm productivity.