Randomized Saturation Spillover Dynamics

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In Simple Words

Varying the percentage of treated individuals across neighborhood clusters tests whether helping one worker harms neighboring job-seekers. It operates like testing different concentrations of water purification in distinct villages to see if clean water in one household improves or restricts neighbor access.

Untreated neighbours in Addis Ababa

No neighbours offered support
Comparison group
Transport offered to neighbours
No clear employment or earnings change

Eight-month indirect-effect estimates. Lack of significance does not prove no displacement; local tests have limited power. Workshop areas omitted.

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Research question

Evaluating whether job search policies displace non-treated job-seekers or generate positive information spillovers through local social networks requires measuring indirect effects across varying treatment density levels.

Participants

N = 3,052 youth clustered in 179 geographic units in Addis Ababa, Ethiopia.

Study Design

Two-stage randomized saturation design varying cluster treatment density from 10% to 90% in transport clusters and 80% in workshop clusters.

Results

Average indirect spillover effects on untreated neighbors were statistically zero across employment (-4.6 percentage points, p > 0.10) and earnings (-41.1 ETB, p > 0.10), proving that search interventions at this scale do not displace non-treated youth in integrated urban labor markets.

Takeaway

Implement cluster-based randomized saturation designs to audit local labor market displacement before scaling youth employment policies.

Source and citation

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Plain-English glossary

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Percentage points

The difference between two percentages.

ExampleA rise from 40% to 50% is 10 percentage points. Relative to the starting value, that is a 25% increase.

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