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Digital Labor-Market Intermediation and Job Expectations: Evidence from a Field Experiment

Author Info

Listed author(s):
  • Dammert, Ana C.

    ()

    (Carleton University)

  • Galdo, Jose C.

    ()

    (Carleton University)

  • Galdo, Virgilio

    ()

    (World Bank)

Abstract

Subjective expectations are fundamental for understanding individual behavior. Yet, little is known about how individuals use new information to formulate and update their subjective expectations. In this study, we exploit data from a multi-treatment field experiment to investigate how job-market information sent to jobseekers via short text messages (SMS) influence subjective job gain expectations in Peru. Results show that jobseekers who received digital intermediation based on a large information set increased their before-after job gain expectations relative to the control group. Independently of the information channel, no significant effects were found when labor-market intermediation is based on a restricted (short) set of information.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7395.

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Length: 17 pages
Date of creation: May 2013
Publication status: published in: Economics Letters, 2013, 120 (1), 112-116
Handle: RePEc:iza:izadps:dp7395
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Keywords: field experiments; subjective expectations; labor-market intermediation; ICT; Peru;

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Find related papers by JEL classification:
  • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
  • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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  1. David Hirshleifer & Tyler Shumway, 2003. "Good Day Sunshine: Stock Returns and the Weather," Journal of Finance, American Finance Association, vol. 58(3), pages 1009-1032, 06.
  2. Charles F. Manski, 2004. "Measuring Expectations," Econometrica, Econometric Society, vol. 72(5), pages 1329-1376, 09.
  3. Todd Stinebrickner & Ralph Stinebrickner, 2012. "Learning about Academic Ability and the College Dropout Decision," Journal of Labor Economics, University of Chicago Press, vol. 30(4), pages 707-748.
  4. David Campbell & Alan Carruth & Andrew Dickerson & Francis Green, 2007. "Job insecurity and wages," Economic Journal, Royal Economic Society, vol. 117(518), pages 544-566, 03.
  5. List, John A. & Rasul, Imran, 2011. "Field Experiments in Labor Economics," Handbook of Labor Economics, Elsevier.
  6. Aparajita Goyal, 2010. "Information, Direct Access to Farmers, and Rural Market Performance in Central India," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 22-45, July.
  7. Melvin Stephens, 2004. "Job Loss Expectations, Realizations, and Household Consumption Behavior," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 253-269, February.
  8. Jenny C. Aker, 2010. "Information from Markets Near and Far: Mobile Phones and Agricultural Markets in Niger," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 46-59, July.
  9. Robert Jensen, 2007. "The Digital Provide: Information (Technology), Market Performance, and Welfare in the South Indian Fisheries Sector," The Quarterly Journal of Economics, Oxford University Press, vol. 122(3), pages 879-924.
  10. Delavande, Adeline & Giné, Xavier & McKenzie, David, 2011. "Measuring subjective expectations in developing countries: A critical review and new evidence," Journal of Development Economics, Elsevier, vol. 94(2), pages 151-163, March.
  11. David H. Autor, 2001. "Wiring the Labor Market," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 25-40, Winter.
  12. John C. Easterwood & Stacey R. Nutt, 1999. "Inefficiency in Analysts' Earnings Forecasts: Systematic Misreaction or Systematic Optimism?," Journal of Finance, American Finance Association, vol. 54(5), pages 1777-1797, October.
  13. Robert Jensen, 2010. "The (Perceived) Returns to Education and the Demand for Schooling," The Quarterly Journal of Economics, Oxford University Press, vol. 125(2), pages 515-548.
  14. repec:feb:artefa:0109 is not listed on IDEAS
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Cited by:

  1. Ana Dammert & Jose Galdo & Virgilio Galdo, 2015. "Integrating mobile phone technologies into labor-market intermediation: a multi-treatment experimental design," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-27, December.
  2. Beam, Emily A., 2016. "Do job fairs matter? Experimental evidence on the impact of job-fair attendance," Journal of Development Economics, Elsevier, vol. 120(C), pages 32-40.
  3. Crépon, Bruno & van den Berg, Gerard J., 2016. "Active Labor Market Policies," IZA Discussion Papers 10321, Institute for the Study of Labor (IZA).
  4. Hübler, Michael & Hartje, Rebecca, 2015. "Smart Phones Support Smart Labor," Hannover Economic Papers (HEP) dp-559, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.

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