The grass is not always greener: the effects of local labor market information on search and employment

We examine how information about local labor market conditions shapes search and employment outcomes for Indian job seekers. Participants were randomly shown information about either job postings, job applicants, or both from a popular job portal for their preferred city and occupation. Treated respondents are more likely to be employed seven months later. This overall effect varies considerably by baseline employment status. Among the initially employed, treatments reduce search off the portal and increase employment, with suggestive evidence of higher persistence in baseline jobs. In contrast, among the initially unemployed, treatments increase search activity but do not raise employment. Employment gains are concentrated among job seekers with less optimistic beliefs about labor market conditions. These findings suggest that limited information about labor market fundamentals may contribute to job churn in lower-income countries.