Location, search costs and youth unemployment: experimental evidence from transport subsidies

Simon Franklin

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Do high search costs affect the labour market outcomes of jobseekers living far away from jobs? I randomly assign transport subsidies to unemployed youth in urban Ethiopia. Treated respondents increase job search intensity and are more likely to find good, permanent, jobs. Subsidies also induce a short‐term reduction in temporary work. I use a high‐frequency phone call survey to track the trajectory of search behaviour over time to show that the subsidies significantly increased job search intensity and the use of formal search methods. The evidence suggests that cash constraints cause young people to give up looking for good jobs too early.

JEL-codes: J1 (search for similar items in EconPapers)
Date: 2018-09-01
New Economics Papers: this item is included in nep-tre and nep-ure
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Citations: View citations in EconPapers (51)

Published in The Economic Journal, 1, September, 2018, 128(694), pp. 2353-2379. ISSN: 0013-0133

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http://eprints.lse.ac.uk/87938/ Open access version. (application/pdf)

Related works:
Journal Article: Location, Search Costs and Youth Unemployment: Experimental Evidence from Transport Subsidies (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:87938

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