Joint Complementarity of Scale and Verification Intermediaries
RCTReview
Digital platforms often fail to drive adoption when they solve candidate reach without providing verification tools for employer risk management [2, 9]. Employers encounter high friction when evaluating unfamiliar candidates outside established social networks [1, 2].
Picture this
Think of a lock that requires two different keys inserted at the exact same moment to open. Turn Key A (advertising) alone and you get a massive line outside your door, but you lock the deadbolt out of fear. Turn Key B (a badge inspector) alone and you have a secure door, but no one is standing in line. Turning both keys together lets employers invite screened candidates inside and complete the hire [2, 5, 8].
What the evidence says
The joint treatment increased employer-initiated candidate contact by 147% (from 2.5 to 6.2 candidates) [8] and increased interview likelihood by 25% (13 percentage points) [8]. Jointly treated firms were 8 percentage points (68%) more likely to hire from the portal [8] and 11 percentage points (73%) more likely to retain the portal hire after 6 months [10].
- Who was studied
- 1,719 job postings across 1,576 urban firms in Bengaluru, India [3, 4].
- How
- Field RCT testing individual versus joint promotional advertising and third-party government ID verification services with administrative data tracking and 6-month follow-up surveys [4-6].
What to do
Bundle visibility-boosting advertisements with verified background or ID documentation when launching digital labor platform services for small and medium enterprises.
From the source
"Firms assigned the combination of services were 8 percentage points (68 percent) more likely to hire someone from the portal than the firms in the comparison group." [8]
Online Job Portals and Firm Hiring in India.pdf