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Journal of Labor Economics Vol. 41 No. 4 2023

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Stefano Caria1; Simon Franklin2; Marc Witte3

1 University of Bristol · 2 London School of Economics and Political Science · 3 New York University

open access

Abstract

We study how active labor market policies affect the exchange of information and support among job seekers. Leveraging a unique social network survey in Ethiopia, we find that a randomized job search assistance intervention reduces information sharing and support between treated job seekers and their active job search partners. Because of lower job search support, untreated individuals search less and, suggestively, have worse employment outcomes. These results are consistent with a model of networks where unemployed individuals form job search partnerships to exploit the complementarities of job search.

DOI
10.1086/721655
Volume
41
Issue
4
Pages
887-922
Language
en
Sources
semanticscholar openalex crossref

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