Abstract
This paper examines how skill-based hiring practices influence the composition of the applicant pool, focusing on candidates’ educational backgrounds, skill profiles, race, and gender. Evidence shows that degree requirements often exclude qualified candidates and reinforce inequality, prompting many employers to adopt skill-based practices such as removing degree requirements to signal that skills, rather than credentials, will drive hiring decisions. Yet little is known about how such requirements affect job seekers’ application behavior. To address this gap, I partnered with a firm hiring for entry-level positions in software engineering and marketing and randomized the educational qualifications stated in job postings across three conditions: (1) a bachelor’s degree explicitly required, (2) no degree requirement stated, and (3) an explicit commitment to skill-based hiring, emphasizing alternative pathways and skill assessments. Using unique identifiers in emails and job board postings, I track candidate engagement (clicks, visits, and applications) and application outcomes. The primary outcomes are (i) the diversity of the applicant pool by education, race, and gender; (ii) the degree of skill match between applicants and job requirements; and (iii) organizational search costs. This design provides evidence on whether removing degree requirements and emphasizing skill assessments expands access for non-degree holders and underrepresented groups, while also assessing potential trade-offs in applicant quality and recruitment efficiency.