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Asymmetric information on noncognitive skills in the Indian labor market : an experiment in online job portal

Author

Listed:
  • Yamauchi,Futoshi
  • Nomura,Shinsaku
  • Imaizumi,Saori
  • Areias,Ana Carolina
  • Chowdhury,Afra Rahman

Abstract

This paper examines the impact of noncognitive (socio-emotional) skills on job market outcomes, using a randomized control trial implemented in an online job portal in India. Job seekers who registered in the portal were asked to take a Big-Five type personality test and, for a random subsample of the test takers, the results were displayed to potential employers. The outcomes are measured by whether a potential employer shortlisted a job seeker by opening (unlocking) his/her application and background information. The results show that the treatment group for whom test results were shown generally enjoyed a higher probability of unlock. That is, employers are more interested in those for whom they can see personality test results. Such a relationship was not seen in the pre-test period, which confirms that the results are unlikely to be spurious. The study also finds a significant impact among organized, calm, imaginative, and/or quiet applicants (no effect is detected among easy-going, sensitive, realistic, and/or outgoing applicants), which seems to display employers'preference.

Suggested Citation

  • Yamauchi,Futoshi & Nomura,Shinsaku & Imaizumi,Saori & Areias,Ana Carolina & Chowdhury,Afra Rahman, 2018. "Asymmetric information on noncognitive skills in the Indian labor market : an experiment in online job portal," Policy Research Working Paper Series 8378, The World Bank.
    • Handle: RePEc:wbk:wbrwps:8378
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