In Simple Words
Search intensity measures how many applications an individual submits, whereas search efficiency measures how many job offers result per application. Lowering travel costs prompts job-seekers to knock on more doors without changing their success rate, whereas providing verified skill credentials improves offer conversion per door knocked without requiring additional travel.
Young job seekers in Addis Ababa
- Study comparison group
- One permanent offer per 7.2 applications
- Job application workshop
- One permanent offer per 5.2 applications
Between baseline and first endline. Significant at 10% before correction; not significant after multiple-testing correction. Transport arm omitted.
See source →Research question
Active labor market policies frequently attempt to solve unemployment by encouraging job-seekers to increase search effort, failing to recognize that increasing search volume yields no return if application conversion rates remain low.
Participants
N = 3,052 young job-seekers tracked via fortnightly high-frequency phone panel surveys in Addis Ababa, Ethiopia.
Study Design
High-frequency phone panel tracking measuring fortnightly search steps, vacancy board visits, application volume, and offer conversion rates across experimental arms.
Results
Transport subsidies increased search probability by 12.5% and vacancy board visits by 9 percentage points without altering long-term outcomes; the application workshop left search intensity unchanged but improved permanent offer conversion from 1 offer per 7.2 applications in the control group to 1 per 5.2 applications (p < 0.10).
Takeaway
Distinguish search volume metrics from application-to-offer conversion rates when evaluating whether labor market constraints stem from spatial search costs or information asymmetries.
Source and citation
See source →Read alongside the research
Plain-English glossary
Original explanations, informed by the references below. Examples are illustrations, not data from the studies above. The research text stays unchanged.
- 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.
Office for National Statistics · Percentages ↗Read more about percentage points →