How do Beliefs and Preferences over Jobs Affect Enrollment in Vocational Training: Experimental Evidence from India

Apurav Yash Bhatiya, Bhaskar Chakravorty, Imbert, Clément and Roland Rathelot

No 20617, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We survey young job seekers in rural India to understand the determinants of enrollment in a government training program with guaranteed placement into urban jobs. Respondents are over-optimistic: they expect jobs that pay more and are closer to home than actual placement opportunities. We implement an RCT and provide them with objective information on the distribution of placement salaries or job locations. The intervention successfully corrects subjects’ beliefs, which affects their decision to enroll in the program. By revealed preferences, our estimates suggest that job seekers need to be paid 50% more to work outside their home state.

JEL-codes: D83 D84 O15 R23 (search for similar items in EconPapers)
Date: 2025-09
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