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Abstract:

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SERC/Urban and Spatial Programme Discussion Paper
Matching Firms and Workers in a Field Experiment in Ethiopia
Girum Abebe, Stefano Caria, Marcel Fafchamps, Paolo Falco, Simon Franklin, Simon Quinn and Forhad Shilpi October 2017
Paper No' SERCDP0225:
Full Paper (pdf)

JEL Classification: O18; J22; J24; J61; J64


Tags: matching; labour; job-search; firms; recruitment; experiment

Do matching frictions affect youth employment in developing countries? We organise job fairs in Addis Ababa, to match firms with a representative sample of young, educated job-seekers. We create very few jobs: one for approximately 10 firms that attended. We explore reasons for this, and find significant evidence for mismatched expectations: about wages, about firms requirements and about the average quality of job-seekers. We find evidence of learning and updating of beliefs in the aftermath of the fair. This changes behaviour: both workers and firms invest more in formal job search after the fairs.