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Job Search and Hiring with Two-Sided Limited Information about Workseekers' Skills

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  • Carranza,Eliana
  • Garlick,Robert James
  • Orkin,Kate
  • Rankin,Neil Andrew

Abstract

This paper presents field experimental evidence that limited information about workseekers' skills distorts both firm and workseeker behavior. Assessing workseekers' skills, giving workseekers their assessment results, and helping them to credibly share the results with firms increases workseekers' employment and earnings. It also aligns their beliefs and search strategies more closely with their skills. Giving assessment results only to workseekers has similar effects on beliefs and search, but smaller effects on employment and earnings. Giving assessment results only to firms increases callbacks. These patterns are consistent with two-sided information frictions, a new finding that can inform the design of information-provision mechanisms.

Suggested Citation

  • Carranza,Eliana & Garlick,Robert James & Orkin,Kate & Rankin,Neil Andrew, 2020. "Job Search and Hiring with Two-Sided Limited Information about Workseekers' Skills," Policy Research Working Paper Series 9345, The World Bank.
  • Handle: RePEc:wbk:wbrwps:9345
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    Cited by:

    1. Haaland, Ingar & Roth, Christopher & Wohlfart. Johannes, 2020. "Designing Information Provision Experiments," The Warwick Economics Research Paper Series (TWERPS) 1275, University of Warwick, Department of Economics.
    2. Samuel Bazzi & Lisa Cameron & Simone Schaner & Firman Witoelar, 2021. "Information, Intermediaries, and International Migration," Melbourne Institute Working Paper Series wp2021n30, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    3. Chakravorty, Bhaskar & Arulampalam, Wiji & Imbert, Clement & Rathelot, Roland, 2021. "Can Information about Jobs Improve the Effectiveness of Vocational Training? Experimental Evidence from India," IZA Discussion Papers 14427, Institute of Labor Economics (IZA).
    4. Livia Alfonsi & Oriana Bandiera & Vittorio Bassi & Robin Burgess & Imran Rasul & Munshi Sulaiman & Anna Vitali, 2020. "Tackling Youth Unemployment: Evidence From a Labor Market Experiment in Uganda," Econometrica, Econometric Society, vol. 88(6), pages 2369-2414, November.
    5. Jonas Hjort & Vinayak Iyer & Golvine de Rochambeau, 2020. "Informational Barriers to Market Access: Experimental Evidence from Liberian Firms," SciencePo Working papers hal-03389180, HAL.
    6. Kevin Donovan & Will Jianyu Lu & Todd Schoellman, 2020. "Labor Market Dynamics and Development," Staff Report 596, Federal Reserve Bank of Minneapolis.
    7. Laurel Wheeler & Robert Garlick & Eric Johnson & Patrick Shaw & Marissa Gargano, 2022. "LinkedIn(to) Job Opportunities: Experimental Evidence from Job Readiness Training," American Economic Journal: Applied Economics, American Economic Association, vol. 14(2), pages 101-125, April.
    8. Crépon, Bruno & Premand, Patrick, 2019. "Direct and Indirect Effects of Subsidized Dual Apprenticeships," IZA Discussion Papers 12793, Institute of Labor Economics (IZA).
    9. Bassi,Vittorio & Kahn,Matthew Edwin & Lozano Gracia,Nancy & Porzio,Tommaso & Sorin,Jeanne, 2021. "Pollution in Ugandan Cities : Do Managers Avoid It or Adapt in Place ?," Policy Research Working Paper Series 9743, The World Bank.

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    More about this item

    Keywords

    Rural Labor Markets; Labor Markets; Educational Sciences; Employment and Unemployment;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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