Testing the Importance of Search Frictions, Matching, and Reservation Prestige through Randomized Experiments in Jordan

Unemployment rates for tertiary-educated youth in Jordan are high, as is the duration of unemployment. Two randomized experiments in Jordan were used to test different theories that may explain this phenomenon. The first experiment tested the role of search and matching frictions by providing firms and job candidates with an intensive screening and matching service based on educational backgrounds and psychometric assessments. Although more than 1,000 matches were made, youth rejected the opportunity to even have an interview in 28 percent of cases, and when a job offer was received, they rejected this offer or quickly quit the job 83 percent of the time. A second experiment built on the first by examining the willingness of educated, unemployed youth to apply for jobs of varying levels of prestige. Youth applied to only a small proportion of the job openings they were told about, with application rates higher for higher prestige jobs than lower prestige jobs. Youth failed to show up for the majority of interviews scheduled for low prestige jobs. The results suggest that reservation prestige is an important factor underlying the unemployment of educated Jordanian youth.

Bibliographic Details

Main Authors:	Groh, Matthew, McKenzie, David, Shammout, Nour, Vishwanath, Tara
Language:	English en_US
Published:	World Bank Group, Washington, DC 2014-09-01
Subjects:	ACCOUNTING, ACTIVE LABOR, ACTIVE LABOR MARKET, ACTIVE LABOR MARKET POLICY, ACTIVE LABOR MARKET PROGRAMS, ACTIVE LABOUR, ACTIVE LABOUR MARKET, ACTIVE LABOUR MARKET POLICY, ANECDOTAL EVIDENCE, ATTRITION, BARRIERS TO ENTRY, CAREER, CAREER DEVELOPMENT, CAREERS, COLLEGE GRADUATE, COLLEGE GRADUATES, COMMUNITY COLLEGE, COMMUNITY COLLEGES, CURRICULUM, DEGREES, DISPLACEMENT, DISPLACEMENT EFFECTS, EARNING, ECONOMIC COSTS, ECONOMICS, EDUCATED UNEMPLOYMENT, EMPLOYABILITY, EMPLOYED GRADUATES, EMPLOYEE, EMPLOYERS, EMPLOYMENT IMPACT, EMPLOYMENT OUTCOMES, EMPLOYMENT PROSPECTS, EMPLOYMENT SERVICES, ENTRY-LEVEL JOB, FINDING JOBS, FIRM SURVEY, GENDER, HIGH UNEMPLOYMENT, HIGH UNEMPLOYMENT RATES, HIRING, HUMAN RESOURCE, HUMAN RESOURCE MANAGEMENT, HUMAN RESOURCES, INCOME, INEXPERIENCED WORKERS, INFLEXIBLE LABOR, INFORMAL EMPLOYMENT, INFORMATION ASYMMETRIES, INFORMATION TECHNOLOGY, INNOVATION, INSTRUCTION, INSURANCE, INTERNATIONAL MIGRATION, INVENTORY, JOB DESCRIPTION, JOB FAIR, JOB FAIRS, JOB MATCHES, JOB OFFER, JOB OFFERS, JOB OPENINGS, JOB OPPORTUNITIES, JOB PLACEMENT, JOB SEARCH, JOB SEARCH ASSISTANCE, JOB SEEKERS, JOB VACANCIES, JOB VACANCY, JOBLESS WORKERS, JOBS, LABOR DEMAND, LABOR MARKET, LABOR MARKET POLICIES, LABOR MARKETS, LABOR MIGRATION, LABOR REGULATIONS, LABOR STATISTICS, LABOR SUPPLY, LABOUR, LABOUR MARKET, LITERATURE, MARKET FAILURES, MEDICAL SERVICES, MINIMUM WAGE, MINIMUM WAGES, MINORITY, MOVEMENTS, OCCUPATIONS, OPEN ACCESS, PAPERS, PERSISTENT UNEMPLOYMENT, PREVIOUS JOB, PREVIOUS JOB EXPERIENCE, PREVIOUS WORK, PREVIOUS WORK EXPERIENCE, PRIOR WORK EXPERIENCE, PRIVATE FIRMS, PRIVATE SECTOR, PRIVATE SECTOR JOB, PRIVATE SECTOR JOBS, PRODUCTIVITY, PUBLIC SECTOR EMPLOYEE, PUBLIC SECTOR JOB, PUBLIC SECTOR JOBS, QUALITY ASSURANCE, READING COMPREHENSION, RECRUITING, RECRUITMENT, SEARCH COSTS, SKILLS TRAINING, SOCIAL COSTS, SOCIAL SCIENCES, SOCIETIES, SOCIETY, STAFF, TEACHER, TECHNICAL SKILLS, TOLERANCE, TRAINING POLICIES, TRAINING SERVICES, UNEMPLOYED, UNEMPLOYED WORKERS, UNEMPLOYED YOUTH, UNEMPLOYMENT, UNEMPLOYMENT BENEFIT, UNEMPLOYMENT BENEFIT RECIPIENTS, UNEMPLOYMENT RATES, UNEMPLOYMENT REDUCTION, UNIVERSITIES, UNIVERSITY GRADUATES, UNIVERSITY STUDENTS, WAGE SUBSIDY, WAGE SUBSIDY PROGRAM, WAGE SUBSIDY PROGRAMS, WORK EXPERIENCE, WORKER, WORKERS, WORTH, YOUNG WORKER, YOUNG WORKERS, YOUTH EMPLOYMENT, YOUTH LABOR, YOUTH UNEMPLOYMENT,
Online Access:	http://documents.worldbank.org/curated/en/2014/09/20205650/testing-importance-search-frictions-matching-reservation-prestige-through-randomized-experiments-jordan https://hdl.handle.net/10986/20329
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