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Location, Search Costs and Youth Unemployment

Experimental Evidence from Transport Subsidies

Bibliographic Data

ID9709874
AuthorsSimon Franklin (0000-0002-9859-8105, London School of Economics and Political Science, corresponding author)
Year2018
Volume128
Issue614
Pages2353-2379
Publication date2018-09-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Economic Journal (JOURNAL)
Journal identifiersISSN: 0013-0133 • E-ISSN: 1468-0297
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1111/ecoj.12509
OpenAlexW2614883608
LanguageEN
Citations received28
References cited35

Do high search costs affect the labour market outcomes of jobseekers living far away from jobs? I randomly assign transport subsidies to unemployed youth in urban Ethiopia. Treated respondents increase job search intensity and are more likely to find good, permanent, jobs. Subsidies also induce a short‐term reduction in temporary work. I use a high‐frequency phone call survey to track the trajectory of search behaviour over time to show that the subsidies significantly increased job search intensity and the use of formal search methods. The evidence suggests that cash constraints cause young people to give up looking for good jobs too early

Affect (linguistics · Business · Cash · Demographic economics · Economic growth · Economics · Labour economics · Market economy · Phone · Seekers · Subsidy · Term (time · Unemployment · Work (physics · Finance · Gender, Labor, and Family Dynamics · Labor market dynamics and wage inequality · Migration and Labor Dynamics · Psychology

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Unique citing works28
Citations per year3,5
Citation span2018 - 2026 (9)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 27

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