Table 8

Returns to Signaling by Test Score

Dependent Variable
Log (Project Value)Number of ProjectsNumber of Projects > 0Earnings
(1)(2)(3)(4)
Number of microcredentials−0.012***0.00040.00040.491
(0.003)(0.002)(0.002)(1.758)
Number of microcredentials × standardized test score rank0.013***0.001+0.001+5.450***
(0.002)(0.001)(0.001)(1.346)
Fixed effectsTestTestTestTest
Observations99,379255,674255,674255,674
Adjusted R20.1450.2220.2220.02
  • Notes: Estimates are from event‐study specification with test fixed effects. In addition to the variables reported, all models include year dummies, an average rating for completed projects, a dummy variable with the value 1 if a worker does not have ratings from past projects, cumulative (arsinh‐transformed) dollars earned on the platform, and the cumulative number of completed projects on the platform, measured at the time of project start. The significance levels in all specifications are: *** = 0.1%, ** = 1%, * = 5%, and + = 10%.