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Testing the importance of search frictions and matching through a randomized experiment in Jordan

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  • Matthew Groh
  • David McKenzie
  • Nour Shammout
  • Tara Vishwanath

Abstract

We test the role of search and matching frictions in explaining the high unemployment of tertiary-educated youth in Jordan through a randomized experiment. Firms and job candidates were provided with a job-matching service based on educational backgrounds and psychometric assessments. Although more than 1,000 matches were made, youth rejected the opportunity of an interview in 28 percent of cases, and when a job offer was received, they rejected this offer or quickly quit the job 83 percent of the time. The results suggest voluntary unemployment in this context arises from preferences over non-wage job attributes. Copyright Groh et al.; licensee Springer. 2015

Suggested Citation

  • Matthew Groh & David McKenzie & Nour Shammout & Tara Vishwanath, 2015. "Testing the importance of search frictions and matching through a randomized experiment in Jordan," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-20, December.
    • Handle: RePEc:spr:izalbr:v:4:y:2015:i:1:p:1-20:10.1186/s40172-015-0022-8
    DOI: 10.1186/s40172-015-0022-8
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    More about this item

    Keywords

    O12; O15; J64; J08; Psychometrics; Labor market matching; Reservation utility; Youth unemployment; Jordan; Randomized experiment;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

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