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Labour Market Effects of Digital Matching Platforms: Experimental Evidence from Sub-Saharan Africa

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  • Jones, Sam

    (UNU-WIDER)

  • Sen, Kunal

    (University of Manchester)

Abstract

Can digital labour market platforms reduce search frictions in formal or informal labour markets? We study this question using a randomized experiment embedded in a tracer study of the work transitions of graduates from technical and vocational colleges in Mozambique. We implement an encouragement design, inviting graduates by SMS to join established digital platforms: Biscate, a site to find freelancers for informal manual tasks; and Emprego, a conventional formal jobs website. In contrast to positive estimates of the contribution of both platforms to job outcomes from naïve (per-treatment) estimates, both intent-to-treat and complier average treatment effects are consistently zero in the full sample, while the impact on life satisfaction is negative. However, use of the informal jobs platform leads to better work outcomes for women, especially those with manual qualifications, for whom earnings rise by over 50%.

Suggested Citation

  • Jones, Sam & Sen, Kunal, 2022. "Labour Market Effects of Digital Matching Platforms: Experimental Evidence from Sub-Saharan Africa," IZA Discussion Papers 15409, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15409
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    2. Afridi, Farzana & Dhillon, Amrita & Roy, Sanchari & Sangwan, Nikita, 2023. "Social Networks, Gender Norms and Labor Supply: Experimental Evidence Using a Job Search Platform," CAGE Online Working Paper Series 677, Competitive Advantage in the Global Economy (CAGE).
    3. Hasrini Sari & Rachmasari Adinda, 2023. "Examining Customer Experience in Using a Chatbot," International Journal of Asian Business and Information Management (IJABIM), IGI Global, vol. 14(1), pages 1-16, January.

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    More about this item

    Keywords

    digital labour platforms; search frictions; technical and vocational education; unemployment; Mozambique;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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