Location, Search Costs and Youth Unemployment: Experimental Evidence from Transport Subsidies
通过随机向埃塞俄比亚城市失业青年发放交通补贴,发现补贴提高了求职强度,增加了找到好工作的概率,并减少了临时工作,表明现金约束导致青年过早放弃寻找好工作。
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.