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Screening and Signaling Non-Cognitive Skills: Experimental Evidence from Uganda

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  • Bassi, Vittorio
  • Nansamba, Aisha

Abstract

We study how employers and job-seekers respond to credible information on skills that are difficult to observe, and how this affects matching in the labor market. We experimentally vary whether certificates on workers' non-cognitive skills are disclosed to both sides of the market during job interviews between young workers and small firms in Uganda. The certificates cause workers to increase their labor market expectations, while high-ability managers revise their assessments of the workers' skills upwards. The reaction in terms of beliefs leads to an increase in positive assortative matching and to higher earnings for workers, conditional on employment.

Suggested Citation

  • Bassi, Vittorio & Nansamba, Aisha, 2021. "Screening and Signaling Non-Cognitive Skills: Experimental Evidence from Uganda," CEPR Discussion Papers 16546, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:16546
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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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