Searching with Friends

80 Pages Posted: 16 Nov 2020

See all articles by Stefano Caria

Stefano Caria

University of Bristol

Simon Franklin

London School of Economics & Political Science (LSE) - London School of Economics

Marc Witte

New York University (NYU) - New York University Abu Dhabi

Abstract

We study how active labor market policies affect the exchange of information and support among jobseekers. Leveraging a unique social network survey in Ethiopia, we find that a randomized job-search assistance intervention reduces information sharing and support between treated jobseekers and their active job-search partners. Due to lower job-search support, untreated individuals search less and, suggestively, have worse employment outcomes. These results are explained by a model of networks where unemployed individuals form job-search partnerships to exploit the complementarities of job search. These partnerships are broken if policy creates inequality in the access to information about job vacancies.

Keywords: job search, social networks, RCT, active labor market policies

JEL Classification: D85, L14, O12, J64, D8

Suggested Citation

Caria, Stefano and Franklin, Simon and Witte, Marc, Searching with Friends. IZA Discussion Paper No. 13857, Available at SSRN: https://ssrn.com/abstract=3730455

Stefano Caria (Contact Author)

University of Bristol ( email )

University of Bristol,
Senate House, Tyndall Avenue
Bristol, BS8 ITH
United Kingdom

Simon Franklin

London School of Economics & Political Science (LSE) - London School of Economics ( email )

Marc Witte

New York University (NYU) - New York University Abu Dhabi

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
3
Abstract Views
91
PlumX Metrics