Job Search and Hiring with Limited Information about Workseekers’ Skills

Journal Article
Published on 1 November 2022

The published version of this article is available here at the American Economic Review.

Abstract

We assess South African workseekers' skills and disseminate the assessment results to explore how limited information affects firm and workseeker behavior. Giving workseekers assessment results that they can credibly share with firms increases workseekers' employment and earnings and better aligns their skills, beliefs and search strategies. Giving workseekers assessment results that they cannot easily share with firms has similar effects on beliefs and search, but smaller effects on employment and earnings. Giving assessment results only to firms shifts interview decisions. These findings show that getting credible skill information to the right agents can improve outcomes in the labor market.

Authors

Eliana Carranza

World Bank

Robert Garlick

Duke University

Kate Orkin

University of Oxford

Neil Rankin

Stellenbosch University