Experiments and Job Search
Paper Session
Saturday, Jan. 6, 2024 10:15 AM - 12:15 PM (CST)
- Chair: Michèle Belot, Cornell University
Young Workers’ Beliefs about Potential Jobs: Do Misperceptions Distort Search Behavior?
Abstract
How well informed are job seekers about the wages and other amenities offered by different jobs? Does poor information distort job seekers search and application behavior? To answer these questions, we conduct a survey experiment among all young workers who just graduated from any higher education program in Denmark. We tailor the survey to each education program, so that respondents are asked about the specific types of jobs that are relevant given their educational background. We link the survey with novel administrative data on actual applied-for jobs, as well as later job outcomes.The first part of the survey elicits beliefs about the wages offered in different types of jobs, as well as the likelihood of getting these jobs if applying. By comparing elicited beliefs to ground truth measures from administrative registers, we determine the extent of workers’ misperceptions about potential jobs. Using data on actual job search, we describe how these (potentially incorrect) beliefs correlate with search behavior. The detailed background information in the linked administrative data allow us to examine which workers might are more susceptible to hold incorrect beliefs and misdirect their search. We particularly focus on the heterogeneity in terms of parental background.
The second part of the survey randomly assigns two information treatments aimed at correcting worker beliefs about the wages offered in different jobs and about the likelihood of getting these jobs if applying for them. After the information treatment, we ask respondents about job preferences and planned search behavior. This allows us to provide causal evidence on whether additional information can help new graduates. We then identify a simple model of job search to quantify how much new graduates care about various characteristics of jobs. Finally, we perform counterfactual exercises that quantify how job search outcomes would differ if workers were better informed."
Using AI to Expand the Job Search of Workers in the Post-COVID-19 Economy
Abstract
The US economy has recovered over 90% of pandemic-related job losses, but there has been a persistent increase in unfilled vacancies, particularly in frontline sectors. Factors such as low compensation, inflexibility, poor worker well-being, and information frictions contribute to this labor demand-supply gap. Skill transferability across frontline positions is not always apparent to job seekers, leading to a narrow job search despite their interests in finding employment that aligns with their updated preferences for flexibility and job satisfaction. We hypothesize that these information frictions intensify existing search barriers and could contribute to observed delays in re-employment. Addressing informational discrepancies and recommending local vacancies based on predicted performance fit can expedite re-employment, potentially resulting in higher wages for job seekers. We propose investigating whether AI-assisted algorithmic matching of skills and psychometric profiles to overlooked vacancies can assist job seekers in their search. We conduct a randomized controlled trial among users of online job search platforms who are searching for low-skill service jobs in the United States. We estimate the impacts on remuneration and job offer acceptance, among other outcomes. Additionally, we explore heterogeneity by race, hypothesizing that if discrimination interacts with information frictions, groups traditionally discriminated against might benefit more from the intervention.Advising Job Seekers in Occupations with Poor Prospects: A Field Experiment
Abstract
We study the impact of online information provision to job seekers who are looking for work in occupations with relatively poor labor market prospects. The information is provided through a personalized email containing suggestions about suitable alternative occupations and how the prospects of these alternatives compare to the job seekers' current occupation of interest. We additionally include a link to a motivational video for parts of the treatment group. We evaluate the interventions using a randomized field experiment covering all registered job seekers in the target occupations, where two thirds are treated. Our email is opened by the vast majority of job seekers, revealing the alternative suggestions. The motivational video link is rarely used. Effects on unemployed job seekers in structurally poor labor markets are large: their employment, hours of work and labor income all improve by 4% to 5%, with persistent impact over 1.5 years. There is little impact on job seekers in “Covid” occupations which did well prior to and after the lockdowns.Discussant(s)
Sandra Phlippen
,
University of Groningen
Jean-Francois Gauthier
,
HEC Montréal
Bart de Koning
,
Cornell University
Vittorio Bassi
,
University of Southern California
JEL Classifications
- J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers
- J4 - Particular Labor Markets