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The selection of talent : experimental and structural evidence from Ethiopia
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Abebe, Girum, Caria, Stefano and Ortiz-Ospina, Esteban (2021) The selection of talent : experimental and structural evidence from Ethiopia. American Economic Review, 111 (6). pp. 1757-1806. doi:10.1257/aer.20190586 ISSN 0002-8282.
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Official URL: https://doi.org/10.1257/aer.20190586
Abstract
We study how search frictions in the labour market affect firms’ ability to recruit talented workers. In a field experiment in Ethiopia, we show that an employer can attract more talented applicants by offering a small monetary incentive for making a job application. Estimates from a structural model suggest that the intervention is effective because the cost of making a job application is large, and positively correlated with jobseeker ability. We provide evidence that this positive correlation is driven by dynamic selection. In a second experiment, we show that local recruiters underestimate the positive impacts of application incentives.
| Item Type: | Journal Article | |||||||||
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| Subjects: | H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce |
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| Divisions: | Faculty of Social Sciences > Economics | |||||||||
| Library of Congress Subject Headings (LCSH): | Labor market, Employees -- Recruiting, Applications for positions | |||||||||
| Journal or Publication Title: | American Economic Review | |||||||||
| Publisher: | American Economic Association | |||||||||
| ISSN: | 0002-8282 | |||||||||
| Official Date: | June 2021 | |||||||||
| Dates: |
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| Volume: | 111 | |||||||||
| Number: | 6 | |||||||||
| Page Range: | pp. 1757-1806 | |||||||||
| DOI: | 10.1257/aer.20190586 | |||||||||
| Status: | Peer Reviewed | |||||||||
| Publication Status: | Published | |||||||||
| Reuse Statement (publisher, data, author rights): | Copyright © 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021 by the American Economic Association. Permission to make digital or hard copies of part or all of American Economic Association publications for personal or classroom use is granted without fee provided that copies are not distributed for profit or direct commercial advantage and that copies show this notice on the first page or initial screen of a display along with the full citation, including the name of the author. Copyrights for components of this work owned by others than AEA must be honored. Abstracting with credit is permitted. The author has the right to republish, post on servers, redistribute to lists and use any component of this work in other works. For others to do so requires prior specific permission and/or a fee. Permissions may be requested from the American Economic Association Administrative Office by going to the Contact Us form and choosing "Copyright/Permissions Request" from the menu. Copyright © 2020 AEA | |||||||||
| Access rights to Published version: | Restricted or Subscription Access | |||||||||
| Date of first compliant deposit: | 3 February 2021 | |||||||||
| Date of first compliant Open Access: | 8 February 2021 | |||||||||
| RIOXX Funder/Project Grant: |
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| Is Part Of: | 1 | |||||||||
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