Decoupling Search Intensity from Employment Outcomes
Traditional labor market models assume that increasing job search effort automatically translates into better employment, overlooking the fact that without verifiable skill signals, increased search yields only short-term low-quality work.
Picture this
Imagine knocking on 100 doors to sell an uninspected mystery box versus knocking on 5 doors with an official quality guarantee—knocking on more doors gets you more quick glances, but having the guarantee is what actually closes the high-value sale regardless of how many doors you knock on.
What the evidence says
The transport subsidy increased active job search by **12.5%** (5 percentage points, p < 0.05) and job board visits by **30%** (9 percentage points, p < 0.01) but generated **zero 4-year wage gains**; conversely, the application workshop caused **no change in search intensity** or application volume, yet increased 4-year monthly earnings by **20%** (299.5 ETB, p < 0.05).
- Who
- **N = 3,052 youth job-seekers** in Addis Ababa, Ethiopia.
- How
- High-frequency fortnightly phone panel survey tracking search steps and job applications alongside RCT intervention arms.
What to do
Shift active labor market policy design from encouraging raw job search volume toward equipping applicants with objective skill certification.
From the source
"The job application workshop, on the other hand, does not affect the likelihood of searching for a job or the number of job applications sent... In the short run it increases the probability of permanent and formal work without increasing the intensity of job search."
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