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Learning Management through Matching: A Field Experiment Using Mechanism Design

Author

Listed:
  • Abebe, Girum

    () (Policy Studies Institute)

  • Fafchamps, Marcel

    () (Stanford University)

  • Koelle, Michael

    () (University of Oxford)

  • Quinn, Simon

    () (University of Oxford)

Abstract

We place young professionals into established firms to shadow middle managers. Using random assignment into program participation, we find positive average effects on wage employment, but no average effect on the likelihood of self-employment. We match individuals to firms using a deferred-acceptance algorithm, and show how this allows us to identify heterogeneous treatment effects by firm and intern characteristics. We find striking heterogeneity in self-employment effects, and show that some assignment mechanisms can substantially outperform random matching in generating employment and income effects. These results demonstrate the potential for matching algorithms to improve the design of field experiments.

Suggested Citation

  • Abebe, Girum & Fafchamps, Marcel & Koelle, Michael & Quinn, Simon, 2019. "Learning Management through Matching: A Field Experiment Using Mechanism Design," IZA Discussion Papers 12572, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp12572
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    References listed on IDEAS

    as
    1. Abebe, Girum & Caria, Stefano & Fafchamps, Marcel & Falco, Paolo & Franklin, Simon & Quinn, Simon, 2017. "Anonymity of distance? Job search and labour market exclusion in a growing African city," LSE Research Online Documents on Economics 86573, London School of Economics and Political Science, LSE Library.
    2. James J. Heckman & Edward Vytlacil, 2005. "Structural Equations, Treatment Effects, and Econometric Policy Evaluation," Econometrica, Econometric Society, vol. 73(3), pages 669-738, May.
    3. repec:ucp:jpolec:doi:10.1086/696154 is not listed on IDEAS
    4. J.J. Heckman & E.E. Leamer (ed.), 2007. "Handbook of Econometrics," Handbook of Econometrics, Elsevier, edition 1, volume 6, number 6b, January.
    5. Miriam Bruhn & Dean Karlan & Antoinette Schoar, 2018. "The Impact of Consulting Services on Small and Medium Enterprises: Evidence from a Randomized Trial in Mexico," Journal of Political Economy, University of Chicago Press, vol. 126(2), pages 635-687.
    6. Girum Abebe & A Stefano Caria & Marcel Fafchamps & Paolo Falco & Simon Franklin & Simon Quinn, 2018. "Anonymity or Distance? Job Search and Labour Market Exclusion in a Growing African City," CSAE Working Paper Series 2018-12, Centre for the Study of African Economies, University of Oxford.
    7. J.J. Heckman & E.E. Leamer (ed.), 2007. "Handbook of Econometrics," Handbook of Econometrics, Elsevier, edition 1, volume 6, number 6a, January.
    8. Trapp, Andrew C. & Teytelboym, Alexander & Martinello, Alessandro & Andersson, Tommy & Ahani, Narges, 2018. "Placement Optimization in Refugee Resettlement," Working Papers 2018:23, Lund University, Department of Economics.
    9. Abebe, Girum & Caria, Stefano & Fafchamps, Marcel & Falco, Paolo & Franklin, Simon & Quinn, Simon, 2017. "Anonymity of distance? Job search and labour market exclusion in a growing African city," LSE Research Online Documents on Economics 86573, London School of Economics and Political Science, LSE Library.
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    More about this item

    Keywords

    propensity score; field experiments; management practices; self-employment; causal inference;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design

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