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Increasing Employment Through the Partial Release of Information

Author

Listed:
  • Surajeet Chakravarty

    (University of Exeter)

  • Todd R. Kaplan

    (University of Exeter)

  • Luke Lindsay

    (University of Exeter)

Abstract

CSkills and ability affect the likelihood of a worker getting hired. We ask if keeping these attributes fixed, can we increase employment by changing the information employers receive about potential workers. We use labora- tory experiments with subjects as employers and agencies to test how differ- ent market designs can result in different information being released about workers which in turn affects the number hired. We find that full informa- tion about workers leads to high employer profits. Revealing coarser and not necessarily verifiable information about workers increases employment albeit at the expense of the employersÕ profits and average skill of workers employed.

Suggested Citation

  • Surajeet Chakravarty & Todd R. Kaplan & Luke Lindsay, 2020. "Increasing Employment Through the Partial Release of Information," Discussion Papers 2001, University of Exeter, Department of Economics.
  • Handle: RePEc:exe:wpaper:2001
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    File URL: http://people.exeter.ac.uk/RePEc/dpapers/DP2001.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Weather; Job placements; lab experiments; institutions; information design; unemployment;
    All these keywords.

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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