Imperfect Information in the Labor Market

Abstract:

This project studies (1) whether job seekers have accurate perceptions about their labor market opportunities and (2) whether providing tailored information about occupations offering relatively high wages and strong employment growth to unemployed job seekers increases their employment and earnings. We will conduct a randomized controlled trial and field novel surveys of job seekers in partnership with an organization in southwest Michigan that provides federally-funded employment services. Our results will shed light on how low and moderately-skilled workers make job search decisions and whether imperfect information limits their economic opportunity.