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Local externalities in labor markets: congestion and information flow among peers

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  • Berniell, Lucila
  • de la Mata, Dolores
  • Juncosa, Federico

Abstract

We explore local externalities in labor markets, exploiting the random assignment of a large-scale internship program in Argentina. Examining the probability of registered employment in the 12 months after the program, we find that applicants are affected by two opposing external effects: those whose closest applicant received the internship have an employment rate 1.8 percentage points higher than the neighbors of non-beneficiary applicants, while those who face the top decile of program saturation in their neighborhood show an employment rate 2.98 percentage points lower than those in the first decile.

Suggested Citation

  • Berniell, Lucila & de la Mata, Dolores & Juncosa, Federico, 2020. "Local externalities in labor markets: congestion and information flow among peers," Research Department working papers 1671, CAF Development Bank Of Latinamerica.
    • Handle: RePEc:dbl:dblwop:1671
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    File URL: https://scioteca.caf.com/handle/123456789/1671
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    Keywords

    Banca de desarrollo; Desarrollo; Desempleo; Economía; Educación; Habilidades y destrezas; Investigación socioeconómica; Jóvenes; Políticas públicas; Sector académico;
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