The job search process is complex and rife with information frictions. We partner with an online job portal to provide over 6,000 job seekers in India with customized and timely information about labor market conditions for their preferred city and occupation on the portal. Specifically, we randomly provide information regarding vacancies (demand), searchers (supply), or both (tightness); a control group receives only general job search guidance. We find that treated respondents are 10% more likely to be employed than control respondents six months after treatment. This positive effect is driven by those with less optimistic beliefs about finding new employment at baseline; these individuals adjust their search to find new jobs if unemployed and stay in the same jobs if employed at baseline. Our experiment shows how access to information about local labor market conditions can reduce frictional unemployment.
Impacts of Local Labor Market Information on Search and Employment: Evidence from India
- Niharika Singh
- Sharvari Ravishankar