Conformity and Soft Skills as Determinants of Alternatively Credentialed Non-College Graduate Hireability

Abstract

Despite targeting technical skills, vocational school graduates earn less than college graduates. This paper presents evidence that conformity selection and perceived skill gaps explain differences in hireability. Microdata from the United States reveal a perceived soft skill deficit for alternatively credentialed noncollege graduate (ACNG) labor. Conformity is also important, but the direction of effect is heterogenous by employer type. Conformity and perceived skill gaps explain about one-third of the hireability variance. Perceived soft skill gaps explain more hireability variance than widely recognized factors like the industry of occupation. Opposite conventional explanation, results suggest that conformity reduces hireability on average. Respondents tend to perceive ACNG candidates as an even mix of high and low performers. Evidence favors employer risk aversion toward labor productivity as a preferred explanation of low ACNG demand. The conclusion incorporates discussion of public misperception on vocational school costs and suggests activities to reduce unconscious bias