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Project Description

Summary:  View help for Summary We study how search frictions in the labour market affect firms' ability to recruit talented workers. In a field experiment in Ethiopia, we show that an employer can attract more talented applicants by offering a small monetary incentive for making a job application.  Estimates from a structural model suggest that the intervention is effective because the cost of making a job application is large, and positively correlated with jobseeker ability.  We provide evidence that this positive correlation is driven by dynamic selection. In a second experiment, we show that local recruiters underestimate the positive impacts of application incentives. 

Scope of Project

Subject Terms:  View help for Subject Terms Search frictions; RCT; Structural model; Ethiopia
JEL Classification:  View help for JEL Classification
      J23 Labor Demand
      J24 Human Capital; Skills; Occupational Choice; Labor Productivity
      O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
Geographic Coverage:  View help for Geographic Coverage Ethiopia
Data Type(s):  View help for Data Type(s) administrative records data; experimental data; program source code; survey data

Methodology

Unit(s) of Observation:  View help for Unit(s) of Observation Jobseekers, Firms

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