Asymmetric Information on Noncognitive Skills in the Indian Labor Market

This paper examines the impact of noncognitive (socio-emotional) skills on job market outcomes, using a randomized control trial implemented in an online job portal in India. Job seekers who registered in the portal were asked to take a Big-Five type personality test and, for a random subsample of the test takers, the results were displayed to potential employers. The outcomes are measured by whether a potential employer shortlisted a job seeker by opening (unlocking) his/her application and background information. The results show that the treatment group for whom test results were shown generally enjoyed a higher probability of unlock. That is, employers are more interested in those for whom they can see personality test results. Such a relationship was not seen in the pre-test period, which confirms that the results are unlikely to be spurious. The study also finds a significant impact among organized, calm, imaginative, and/or quiet applicants (no effect is detected among easy-going, sensitive, realistic, and/or outgoing applicants), which seems to display employers' preference.

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Bibliographic Details
Main Authors: Imaizumi, Saori, Yamauchi, Futoshi, Areias, Ana, Nomura, Shinsaku, Chowdhury, Afra
Format: Working Paper biblioteca
Language:English
Published: World Bank, Washington, DC 2018-03
Subjects:NON-COGNITIVE SKILLS, JOB CREATION, RANDOMIZED CONTROL TRIAL, LABOR MARKET, LABOR SKILLS, SOCIO-EMOTIONAL SKILLS, PERSONALITY TEST,
Online Access:http://documents.worldbank.org/curated/en/782031522089044751/Asymmetric-information-on-noncognitive-skills-in-the-Indian-labor-market-an-experiment-in-online-job-portal
https://hdl.handle.net/10986/29558
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Summary:This paper examines the impact of noncognitive (socio-emotional) skills on job market outcomes, using a randomized control trial implemented in an online job portal in India. Job seekers who registered in the portal were asked to take a Big-Five type personality test and, for a random subsample of the test takers, the results were displayed to potential employers. The outcomes are measured by whether a potential employer shortlisted a job seeker by opening (unlocking) his/her application and background information. The results show that the treatment group for whom test results were shown generally enjoyed a higher probability of unlock. That is, employers are more interested in those for whom they can see personality test results. Such a relationship was not seen in the pre-test period, which confirms that the results are unlikely to be spurious. The study also finds a significant impact among organized, calm, imaginative, and/or quiet applicants (no effect is detected among easy-going, sensitive, realistic, and/or outgoing applicants), which seems to display employers' preference.