Abstract

[Purpose] Despite their strong academic capabilities, the graduates of national universities in Peru tend to face more difficulties when searching a job or tend to find employment at workplaces that offer lower wages compared to those with similar abilities from private universities. This research aims to examine the factors associated with disparity in the labor outcomes of bachelor’s degree holders across socioeconomic status.
 [Research Methods] We first reviewed the history, finance, and admissions system of Peruvian higher education institutions to ruminate on the divided higher education system where the high school to college pipelines differ depending on socioeconomic status. Next, we examined the factors associated with the disadvantages national university graduates experience in the context of racial discrimination, prejudice stemming from terrorism, and social capital.
 [Results] First, college pipeline is divided across the level of socioeconomic background where students with higher status, predominantly white, are more likely to attend private universities. They achieve better labor outcomes due to the inequality in career opportunities favoring white candidates. Second, the history of national universities involved in the terrorist activities of radical communist guerrilla groups serves as a sort of stigma disadvantaging the graduates from national universities in labor market. Third, job seekers with higher socioeconomic status are able to effectively use their social networks, putting students from national universities at a disadvantage compared to private university graduates.
 [Conclusion] Peruvian society is divided in terms of the student access to colleges depending on socioeconomic status, and this stratification extends to the labor market, resulting in the limitations on social mobility based on one's Alma mater. In order for Peruvian higher education to contribute to social mobility, these unfair employment factors arising from individual socioeconomic backgrounds need to be addressed, and diversity and equity in student access should be improved.

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