Information Frictions and Skill Signaling in the Youth Labor Market

• 成果类型: Article
• 署名作者: Heller, Sara B.; Kessler, Judd B.
• 署名单位: University of Michigan System; University of Michigan; National Bureau of Economic Research; University of Pennsylvania
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20220544
• 发表日期: 2024
• 页码: 1-33
• 关键词: field experiment; EMPLOYMENT

摘要

This paper provides evidence that information frictions limit the labor market trajectories of US youth. We provide credible skill signals-recommendation letters based on supervisor feedback-to a random subset of 43,409 participants in New York's summer jobs program. Letters increase employment the following year by 3 percentage points (4.5 percent). Earnings effects grow over four years to a cumulative $1,349 (4.9 percent). We find little evidence of increased job search or confidence; instead, signals may help employers better identify successful matches with high-productivity workers. Pulling youth into the labor market can, however, hamper on-time graduation, especially among low-achieving students.