Do search frictions constrain the labor market prospects of young workers? This research conducted a randomized evaluation of two programs designed to lower spatial and informational barriers to job search among 4,000 young Ethiopians. Treatments conducted found young job-seekers got better jobs (more stable and formal), and the effects are strongest for the most disadvantaged job-seekers. Investigating the underlying mechanisms showed interventions mitigated adverse effects of spatial constraints on labor allocation, and helped job applicants to better signal their abilities.
Presented by Marcel Fafchamps, Freeman Spogli Institute, Stanford University
JSDE Seminar Series