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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

SERC Discussion Papers from Spatial Economics Research Centre, LSE

Abstract: 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.

Keywords: matching; labour; job-search; firms; recruitment; experiment (search for similar items in EconPapers)
JEL-codes: O18 J22 J24 J61 J64 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec and nep-lab
Date: 2017-10
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