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Post-graduate experience in low-skilled jobs: A stepping stone or a barrier?

Interview

Access to higher education has increased considerably in low-income countries over the last two decades. Despite this, many graduates find themselves in low-skilled jobs, raising concerns over the effectiveness of their qualifications in shaping their careers.

Although tertiary school enrolment has increased substantially in the developing world, rising from 4.5% to 9.5% between 2000 and 2021 (WDI 2025), it still remains relatively low. The majority of people in low-income countries attend primary school; however, few progress to secondary school, with only 41% enrolling in 2021 (WDI 2025). Labour market surveys consequently only sample a small number of college-educated individuals, as they represent a limited share of the population. This, in turn, impedes research on the tertiary-educated workforce.

Nevertheless, there are at least two reasons to believe that underemployment among college graduates is a widespread issue. First, the latest estimates of underemployment in low-income countries for the general population—which is typically lower than that of young graduates—are very high (e.g. 26% in Gambia and 48% in Rwanda) (ILO 2024). Additionally, across Sub-Saharan Africa, 8 to 11 million youth enter the labour market annually, while only three million formal jobs are created each year (World Bank 2023).

Underemployment of college graduates in low-income countries: An understudied phenomenon

In the context of Burundi, although the number of students in higher education (63,428) is significantly lower than the number of students in primary schools (2,756,241),[1] government expenditure per student in tertiary education is estimated at USD$2,794 per student, compared to $95 in primary education (UNESCO 2023), making higher education much more expensive per capita than primary education. Furthermore, the relatively small number of students in higher education should not diminish the sector’s importance, as these young people represent a crucial demographic. If they remain unemployed, or underemployed, they may engage in activities that pose risks to both themselves and society.

Moreover, the number of students should be assessed in relation to labour markets. Currently, over 90% of the working age population is employed by households, primarily in agriculture, a sector which tends not to attract tertiary-educated individuals (INSBU 2022).

Employers value low-skilled professional experiences

In Ndayikeza (2025), I evaluate whether low-skilled jobs are valued by employers in Burundi. My research is based on an experimental approach resembling the ‘incentivised resume rating’ method developed by Kessler et al. (2019), which aims to circumvent the problem of deception associated with audit studies. In my experiment, employers were asked to evaluate anonymised resumes without making real hiring decisions; however, they were informed that their evaluations would help the human resources company that provided the resumes to better match future profiles to their expectations.

Resumes of recent graduates from the Faculty of Economics and Management at the University of Burundi were presented to local employers, some profiles mentioned postgraduate experience in a low-skilled job, while others had no postgraduate experience. I found that resumes with experience in low-skilled jobs scored approximately 10% higher than resumes with no work experience at all, regardless of the quality of the job seeker. This suggests that employers perceive young people with low-skill experience as persevering, disciplined, and hardworking.

As a corollary, employers are less likely to perceive this type of experience as a sign of financial hardship or that the applicant is less qualified than their classmates. Furthermore, I argue that these experiences help develop transversal skills, such as communication, time management, and teamwork, all of which are essential in any professional environment. These findings align with the experimental literature on the influence of different career histories and various resume signals in securing high-skill employment (Bertrand and Mullainathan 2004, Nunley et al. 2017, Adermon and Hensvik 2022).

Any postgraduate experience serves as a signal in the labour market

These findings challenge preconceived notions that experience in a low-skilled job may hinder a candidate's chances of securing a high-skill position. This is important to recognise, as these notions have implications for a candidate’s willingness to accept low-skilled jobs or mention them in interviews and resumes. My research thus provides valuable insights into the strategies that young graduates can adopt to improve their employment prospects. My findings also have implications for employment policies and youth career advisory services, highlighting the need to better educate students on how to leverage their professional experiences, whether they are qualified or not.

The implications of my research expand beyond Burundi, providing valuable insights for developing countries facing high youth underemployment. I reveal that even low-skilled work experience can significantly influence young graduates’ career path. This offers insights into underemployment, which is a potential source of tension, as university graduates, though in the minority, often want to make their voices heard.

There is a need for more research on the labour market transition of university graduates in developing countries

Previous research using experiments to identify different factors that influence success in the labour market focus mainly on developed countries (Adermon and Hensvik 2022, Gelber et al. 2016, Davis and Heller 2020, Nunleyet al. 2017, Kessler et al. 2019). The lack of similar studies in developing countries is compounded by the fact that national statistical surveys in low-income countries usually do not pay particular attention to university graduates, limiting our knowledge of the dynamics of their transition into the labour market. Oversampling college graduates in these surveys would help improve our understanding of transition dynamics, making it possible to fine-tune recommendations for young graduates and adjust policy accordingly. As employer preferences may depend on the economic context, there is a need for further research in this area.

References

Adermon, A, and L Hensvik (2022), “Gig-jobs: Stepping stones or dead ends?” Labour Economics, 76: 102171.

Bertrand, M, and S Mullainathan (2004), “Are Emily and Greg more employable than Lakisha and Jamal? A field experiment on labor market discrimination,” American Economic Review, 94(4): 991–1013.

Davis, J M, and S B Heller (2020), “Rethinking the benefits of youth employment programs: The heterogeneous effects of summer jobs,” Review of Economics and Statistics, 102(4): 664–677.

Gelber, A, A Isen, and J B Kessler (2016), “The effects of youth employment: Evidence from New York City lotteries,” Quarterly Journal of Economics, 131(1): 423–460.

ILO (2024), "International Labour Organization statistics 2024," International Labour Organization.

INSBU (2022), "Enquête intégrée sur les conditions de vie des ménages au Burundi (EICVMB, 2019–2020): Rapport du module emploi."

Kessler, J B, C Low, and C D Sullivan (2019), “Incentivized resume rating: Eliciting employer preferences without deception,” American Economic Review, 109(11): 3713–3744.

MENRS (2021), "Statistiques du secteur éducatif burundais: Enseignement supérieur," Ministère de l’Éducation Nationale et de la Recherche Scientifique (MENRS).

Ndayikeza, M A (2025), “Underemployment of college graduates: Is doing anything better than doing nothing?” Journal of Development Economics, 103459.

Nunley, J M, A Pugh, N Romero, and R A Seals (2017), “The effects of unemployment and underemployment on employment opportunities: Results from a correspondence audit of the labor market for college graduates,” ILR Review, 70(3): 642–669.

UNESCO (2023), "Education expenditures."

World Bank (2023), “Delivering growth to people through better jobs,” in Africa’s Pulse, No. 28 (October).

WDI (2025), "World development indicators: School enrollment, tertiary (% gross)," World Bank.

[1] Estimates for 2020 (MENRS 2021). Gross enrolment in tertiary education was estimated at 5% in 2020, in comparison to 105% for primary education (World Bank 2025).

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