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Abstract for:

Matching Firms and Workers in a Field Experiment in Ethiopia

Girum  Abebe,  Stefano  Caria,  Marcel  Fafchamps,  Paolo  Falco,  Simon  Franklin,  Simon  Quinn,  Forhad  Shilpi,  October 2017
Paper No' SERCDP0225: | Full paper (pdf)
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Keywords: matching, labour, job-search, firms, recruitment, experiment

JEL Classification: O18; J22; J24; J61; J64

Is hard copy/paper copy available? YES - Paper Copy Still In Print.
This Paper is published under the following series: SERC Discussion Papers
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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.