Anonymity or Distance? Experimental Evidence on Obstacles to Youth Employment Opportunities

Abstract

Do search frictions constrain the labor market prospects of young workers? This paper highlights the results of a randomized evaluation of 2 programmes designed to lower spatial and informational barriers to job search among 4,000 young Ethiopians. One group of subjects received a transport subsidy. Another group participated in a workshop where their skills were certified and they received training on how to make effective job applications. The evaluation found that both treatments help young job seekers get better jobs (more stable and formal), and the effects are strongest for the most disadvantaged job seekers. The paper also investigates the underlying mechanisms and shows that both interventions mitigate the adverse effects of spatial constraints on labor allocation, and that the workshop helped job applicants to better signal their abilities