Asymmetric Information on Noncognitive Skills in the Indian Labor Market: An Experiment in Online Job Portal

27 Pages Posted: 27 Mar 2018 Last revised: 28 Mar 2018

See all articles by Futoshi Yamauchi

Futoshi Yamauchi

A member of the CGIAR Consortium - International Food Policy Research Institute (IFPRI)

Shinsaku Nomura

World Bank

Saori Imaizumi

World Bank

Ana Carolina Areias

World Bank

Afra Rahman Chowdhury

Independent

Date Written: March 26, 2018

Abstract

This paper examines the impact of noncognitive (socio-emotional) skills on job market outcomes, using a randomized control trial implemented in an online job portal in India. Job seekers who registered in the portal were asked to take a Big-Five type personality test and, for a random subsample of the test takers, the results were displayed to potential employers. The outcomes are measured by whether a potential employer shortlisted a job seeker by opening (unlocking) his/her application and background information. The results show that the treatment group for whom test results were shown generally enjoyed a higher probability of unlock. That is, employers are more interested in those for whom they can see personality test results. Such a relationship was not seen in the pre-test period, which confirms that the results are unlikely to be spurious. The study also finds a significant impact among organized, calm, imaginative, and/or quiet applicants (no effect is detected among easy-going, sensitive, realistic, and/or outgoing applicants), which seems to display employers' preference.

Keywords: Labor Markets, Education For All, Educational Populations, Education for Development (superceded), Gender and Development, Rural Labor Markets

Suggested Citation

Yamauchi, Futoshi and Nomura, Shinsaku and Imaizumi, Saori and Areias, Ana Carolina and Chowdhury, Afra Rahman, Asymmetric Information on Noncognitive Skills in the Indian Labor Market: An Experiment in Online Job Portal (March 26, 2018). World Bank Policy Research Working Paper No. 8378, Available at SSRN: https://ssrn.com/abstract=3150091

Futoshi Yamauchi (Contact Author)

A member of the CGIAR Consortium - International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Shinsaku Nomura

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Saori Imaizumi

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Ana Carolina Areias

World Bank

1818 H Street, NW
Washington, DC 20433
United States

Afra Rahman Chowdhury

Independent

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