Information frictions in the labor market: Evidence from a field experiment in Uganda
We study how a lack of information on the skills of workers affects both employers and job seekers. To do so, we design and implement a field experiment in the Ugandan labour market: through the provision of certifications, we vary whether new information on the soft skills of workers is disclosed t...
| المؤلفون الرئيسيون: | , |
|---|---|
| التنسيق: | Working Paper |
| اللغة: | en_US |
| منشور في: |
Growth and Labour Markets in Low Income Countries Program
2022
|
| الموضوعات: | |
| الوصول للمادة أونلاين: | http://hdl.handle.net/10361/15865 |
| id |
10361-15865 |
|---|---|
| record_format |
dspace |
| spelling |
10361-158652022-01-11T21:01:32Z Information frictions in the labor market: Evidence from a field experiment in Uganda Bass, Vittorio Nansamba, Aisha Field experiment Information frictions Job matching Recruitment Signalling Small firms Soft skills Uganda Youth employment We study how a lack of information on the skills of workers affects both employers and job seekers. To do so, we design and implement a field experiment in the Ugandan labour market: through the provision of certifications, we vary whether new information on the soft skills of workers is disclosed to both managers and workers during job interviews. We show that both sides of the market react to the information: managers of higher ability update their beliefs on worker’s skills, while workers with higher skills revise their outside options upwards. Guided by these facts, we develop a screening model with two-sided updating. The model predicts non-linear impacts of the certifications on job offers and hires along with the skill distribution, due to differential effects on worker’s outside options. In line with these predictions, we find the largest employment gains for workers in the middle of the skill distribution. Our estimates of the Internal Rate of Return (IRR) of the intervention range between 9-29%, implying positive welfare gains for the average participant. Motivated by the heterogeneous impacts, we use the model to determine the welfare effects of introducing a mandatory certification policy on soft skills across the entire skill distribution. 2022-01-11T06:10:04Z 2022-01-11T06:10:04Z 2017 2017-04 Working Paper http://hdl.handle.net/10361/15865 en_US https://bigd.bracu.ac.bd/publications/information-frictions-in-the-labor-market-evidence-from-a-field-experiment-in-uganda/ application/pdf Growth and Labour Markets in Low Income Countries Program |
| institution |
Brac University |
| collection |
Institutional Repository |
| language |
en_US |
| topic |
Field experiment Information frictions Job matching Recruitment Signalling Small firms Soft skills Uganda Youth employment |
| spellingShingle |
Field experiment Information frictions Job matching Recruitment Signalling Small firms Soft skills Uganda Youth employment Bass, Vittorio Nansamba, Aisha Information frictions in the labor market: Evidence from a field experiment in Uganda |
| description |
We study how a lack of information on the skills of workers affects both employers and job seekers. To do so, we design and implement a field experiment in the Ugandan labour market: through the provision of certifications, we vary whether new information on the soft skills of workers is disclosed to both managers and workers during job interviews. We show that both sides of the market react to the information: managers of higher ability update their beliefs on worker’s skills, while workers with higher skills revise their outside options upwards. Guided by these facts, we develop a screening model with two-sided updating. The model predicts non-linear impacts of the certifications on job offers and hires along with the skill distribution, due to differential effects on worker’s outside options. In line with these predictions, we find the largest employment gains for workers in the middle of the skill distribution. Our estimates of the Internal Rate of Return (IRR) of the intervention range between 9-29%, implying positive welfare gains for the average participant. Motivated by the heterogeneous impacts, we use the model to determine the welfare effects of introducing a mandatory certification policy on soft skills across the entire skill distribution. |
| format |
Working Paper |
| author |
Bass, Vittorio Nansamba, Aisha |
| author_facet |
Bass, Vittorio Nansamba, Aisha |
| author_sort |
Bass, Vittorio |
| title |
Information frictions in the labor market: Evidence from a field experiment in Uganda |
| title_short |
Information frictions in the labor market: Evidence from a field experiment in Uganda |
| title_full |
Information frictions in the labor market: Evidence from a field experiment in Uganda |
| title_fullStr |
Information frictions in the labor market: Evidence from a field experiment in Uganda |
| title_full_unstemmed |
Information frictions in the labor market: Evidence from a field experiment in Uganda |
| title_sort |
information frictions in the labor market: evidence from a field experiment in uganda |
| publisher |
Growth and Labour Markets in Low Income Countries Program |
| publishDate |
2022 |
| url |
http://hdl.handle.net/10361/15865 |
| work_keys_str_mv |
AT bassvittorio informationfrictionsinthelabormarketevidencefromafieldexperimentinuganda AT nansambaaisha informationfrictionsinthelabormarketevidencefromafieldexperimentinuganda |
| _version_ |
1814307133089382400 |