Arbeitspapier

Matching frictions and distorted beliefs: Evidence from a job fair experiment

We evaluate the impacts of a randomized job-fair intervention in which jobseekers and employers can meet at low cost. The intervention generates few hires, but it lowers participants' expectations and causes both firms and workers to invest more in search as predicted by a theoretical model; this improves employment outcomes for less educated jobseekers. Through a unique two-sided belief-elicitation survey, we confirm that firms and jobseekers have over-optimistic expectations about the market. This suggests that, beyond slowing down matching, search frictions have a second understudied cost: they entrench inaccurate beliefs, further distorting search strategies and labour-market outcomes.

Sprache
Englisch

Erschienen in
Series: Working Paper ; No. 958

Klassifikation
Wirtschaft
Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
Time Allocation and Labor Supply
Human Capital; Skills; Occupational Choice; Labor Productivity
Geographic Labor Mobility; Immigrant Workers
Unemployment: Models, Duration, Incidence, and Job Search
Thema
job-search strategy
recruitment
matching
expectations
beliefs
reservation wage
youth unemployment
Ethiopia

Ereignis
Geistige Schöpfung
(wer)
Abebe, Girum
Caria, Stefano A.
Fafchamps, Marcel
Falco, Paolo
Franklin, Simon
Quinn, Simon
Shilpi, Forhad Jahan
Ereignis
Veröffentlichung
(wer)
Queen Mary University of London, School of Economics and Finance
(wo)
London
(wann)
2023

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Abebe, Girum
  • Caria, Stefano A.
  • Fafchamps, Marcel
  • Falco, Paolo
  • Franklin, Simon
  • Quinn, Simon
  • Shilpi, Forhad Jahan
  • Queen Mary University of London, School of Economics and Finance

Entstanden

  • 2023

Ähnliche Objekte (12)