Michel Armel NDAYIKEZA
Lecturer, University of Burundi
Africa Fellow in Education, Global Education Analytics Institute (GEAI) and Partnership for Economic Policy (PEP)
CERDI-UCA-CNRS-IRD
Going to college is a risky investment because there is no guarantee of securing a job after graduation. The transition from school to work is particularly complicated in low-income countries, where access to higher education has risen considerably over the past two decades, from 4.5% in 2000 to 9.5% in 2021 (WDI, 2025). Many graduates then find themselves in low-skill jobs, i.e. jobs that do not require a university degree, raising the question of the impact of these experiences on their future professional integration. In a context where the creation of skilled jobs is not keeping pace with the increase in the number of graduates (World Bank, 2023), this question becomes essential to inform the choices made by young people at the start of their careers.
An experience valued by employers?
Our study looks at whether, from the employers' point of view, low-skill jobs are a stepping stone or a barrier for young university graduates.
It is based on an experimental approach close to the Incentivized Resume Rating method introduced by Kessler et al. (2019), which aims to circumvent the problem of deception associated with classic experiments known as "audit studies". The experiment conducted as part of this study involved requesting the evaluation of anonymized resumes from various employers, in the absence of a hiring proposal, but informing them that their evaluations will enable the human resources company that sent the resumes to send them profiles that better match their expectations in the future. More specifically, resumes of recent graduates from the Faculty of Economics and Management at the University of Burundi were presented to local employers, some mentioning post-graduate experience in a low-skill job, others showing profiles of individuals with no post-graduate professional experience.
The results show that resumes including experience in low-skill jobs score approximately 10% higher than resumes with no work experience at all, regardless of the quality of the job seeker. Employers perceive young people who have accepted low-skill jobs as persevering, disciplined and hard-working. They see this type of experience less as a sign of financial difficulties, incompetence or demonstrating a lower level of qualification than the applicant's classmates. The study also suggests that these experiences help to develop transversal skills essential in any professional environment, such as communication, time management and teamwork.
A strategic signal on the job market
One might think that experience in a low-skill job might reduce the chances of landing a skilled job. However, our results challenge this assertion. It should be noted that this preconceived idea may itself influence the acceptance of low-skill jobs or the mention of them in interviews or on resumes.
Thus, this research sheds important light on a strategy that young graduates can adopt to improve their employment prospects. It is also informative for employment policies and youth guidance services in order to better capitalize on this type of experience and more effectively inform students about the potential impact of their first professional experiences, whether qualified or not.
In a context where youth underemployment remains a major challenge in developing countries, the insights provided by this study are relevant not only for Burundi but also for other countries facing similar difficulties. By revealing that work experience, even in low-skill jobs, can play a crucial role in the career trajectory of young graduates, this study offers an interesting perspective on the issue of underemployment, a potential source of conflict, as university graduates, although in the minority, tend to seek to be heard vigorously.
A call for more research on the topic
All in all, our study highlights a phenomenon that deserves more attention in developing countries: the underemployment of young university graduates.
National statistical surveys in low-income countries generally do not pay particular attention to university graduates, which limits our knowledge of the dynamics of their professional integration, and of appropriate solutions. A better understanding of these dynamics would enable us to fine-tune recommendations concerning young graduates' labor market transition issues and to adjust job entry policies accordingly. Finally, the study points out that employers' preferences may depend on the economic context, calling for similar research in different countries or at different times.
Article reference
Ndayikeza, M. A. (2025)
Underemployment of college graduates: is doing anything better than doing nothing?,
Journal of Development Economics, Vol.174, May, 103459.
Bibliographical references
- Banque Mondiale, 2023. Delivering growth to people through better jobs. In: Africa’s Pulse, No. 28 (October 2023). Washington, DC: World Bank.
- Kessler, J.B., Low, C., Sullivan, C.D., 2019. Incentivized resume rating: Eliciting employer preferences without deception. American Economic Review 109 (11), 3713–3744.
- WDI, 2025. World development indicators. School enrollment, tertiary (% gross). Urldate 2025-02-17.