We report the results of a field experiment that randomly placed unemployed young people as apprentices with small firms in Ghana, and included no cash subsidy to firms (or workers) beyond in-kind recruitment services. Treated firms experienced increases in firm size of approximately half a worker and firm profits of approximately 10% for each apprentice placement offered, documenting frictions to novice hiring. We interpret the program as providing a novel worker screening technology to firms, as (voluntary) worker participation included non-monetary application costs, echoing the widespread use of an entrance fee mechanism for hiring apprentices in the existing labor market.
