Job Search and Hiring with Two-sided Limited Information about Workseekers’ Skills

71 Pages Posted: 30 Jun 2020

See all articles by Eliana Carranza

Eliana Carranza

World Bank

Robert Garlick

Duke University - Department of Economics

Kate Orkin

University of Oxford - Department of Economics

Neil Rankin

University of the Witwatersrand

Date Written: June 30, 2020

Abstract

We present field experimental evidence that limited information about workseekers’ skills distorts both firm and workseeker behavior. Assessing workseekers’ skills, giving workseekers their assessment results, and helping them to credibly share the results with firms increases workseekers’ employment and earnings. It also aligns their beliefs and search strategies more closely with their skills. Giving assessment results only to workseekers has similar effects on beliefs and search, but smaller effects on employment and earnings. Giving assessment results only to firms increases callbacks. These patterns are consistent with two-sided information frictions, a new finding that can inform design of information-provision mechanisms.

Keywords: employment, job search, limited information, skills

JEL Classification: J23, J24, J31, J41, O15, O17

Suggested Citation

Carranza, Eliana and Garlick, Robert and Orkin, Kate and Rankin, Neil, Job Search and Hiring with Two-sided Limited Information about Workseekers’ Skills (June 30, 2020). Economic Research Initiatives at Duke (ERID) Working Paper No. 296, Available at SSRN: https://ssrn.com/abstract=3639264 or http://dx.doi.org/10.2139/ssrn.3639264

Eliana Carranza

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Robert Garlick (Contact Author)

Duke University - Department of Economics ( email )

213 Social Sciences Building
Box 90097
Durham, NC 27708-0204
United States

Kate Orkin

University of Oxford - Department of Economics ( email )

10 Manor Rd
Oxford, Oxfordshire OX1 3UQ
United Kingdom

HOME PAGE: http://https://sites.google.com/site/kateorkin/home

Neil Rankin

University of the Witwatersrand

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