Finding the (Best) Fit: What Works in Information and Matching Programs

Finding the (Best) Fit: What Works in Information and Matching Programs Nour Shammout & Lisa Corsetto Abdul Latif Jameel Poverty Action Lab (J-PAL) at MIT Rania Sadek Enterprise Development Agency of Egypt September 27, 2017

I. Introduction Introduction to J-PAL J-PAL s Labor Markets sector II. Why information matters: Workshop III. What works in information and matching programs IV. Case study: Job fairs in Egypt V. Conclusion

J-PAL started in 2003 as a center at MIT s Economics Department and includes ~150 professors from over 40 universities who use RCTs to understand what works or not in social policy J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 4

J-PAL s mission is to reduce poverty by ensuring that policy is informed by scientific evidence J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 5

We have 858 ongoing and completed projects across 8 sectors in 81 countries J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 6

J-PAL s Labor Market sector Marianne Bertrand Sector Co-Chair University of Chicago Bruno Crépon Sector Co-Chair ENSAE and Ecole Polytechnique Nour Shammout Sector Manager Lisa Corsetto Sector Staff J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 8

Labor Demand Contracts and Wage Subsidies Information for firms Discrimination Labor Supply Information Dissemination and Job Search Services Self-Employment and Development of the Informal Sector Job Training and Skill Development Matching Supply and Demand Job Placement and Facilitation Services Location, Accessibility, and Migration J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 9

I. Introduction II. Why information matters: Workshop III. What works in information and matching programs IV. Case study: Job fairs in Egypt V. Conclusion

Scenario 1: Job Seeker Perspective Imagine you are a 20-year-old woman living on the outskirts of Addis Ababa, Ethiopia. You have recently completed a vocational certificate from a public institution and you are now looking for your first job. What information would you need to apply for and secure a job? Scenario 2: Employer Perspective Imagine you are the hiring manager at a technology company in Santiago, Chile. You are looking to hire a new administrative associate. The job requires attention to detail, ability to work under tight timelines, and strong communication skills. What information would you need to assess the quality of applicants?

I. Introduction II. Why information matters: Workshop III. What works in information and matching programs Information dissemination and job search services Reducing spatial barriers Providing information for firms Placement services and job fairs IV. Case study: Job fairs in Egypt V. Conclusion

Youth lack information about what jobs exist, what skills are needed, and how to pursue job opportunities Gaps: Youth have inadequate information about available jobs. -What opportunities exist? Which sectors are hiring? -What skills are required? -How much can you expect to earn in various jobs? -How to search for and find jobs? -How to present yourself professionally? Information dissemination Counseling Monitoring J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 13

Information dissemination Information dissemination Providing information to a targeted group of individuals Influence youths investments in education or training and job search activities Information provided may include: What types of jobs exist in the labor market (local or non-local labor markets) What skills these jobs require What resources are available to pursue these jobs Typically provided before or at the onset of a jobseekers search J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 14

Providing information about job opportunities for women in India Northern India: Low education and labor force participation among women Program: Recruiters visited villages and explained BPO jobs available in the city, compensation levels, necessary qualifications, and how to apply Offered placement services to women who contacted them Jensen, 2012; J-PAL Policy Briefcase, 2013 J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 15

Information sessions and recruitment services helped women find jobs in the BPO industry Jensen, 2012 and J-PAL Briefcase, 2013 J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 16

Young women s career aspirations changed Jensen, 2012 and J-PAL Briefcase, 2013 J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 17

Girls were more likely to be enrolled in school, less likely to be married, and delayed childbearing Jensen, 2012 and J-PAL Briefcase, 2013 J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 18

Counseling Counseling Individual or group meetings with career counselors to provide guidance on how to approach search process Influence youths decisions regarding where and how to apply for jobs Services provided may include helping jobseekers: Identify which jobs they are qualified for Prepare application materials Develop interpersonal and communication skills for interviews J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 19

Facilitating access to apprenticeships for disadvantaged youth in France Problem: Getting into apprenticeship is not an easy task. It involves: 1. Finding a training center that matches the apprentice s occupation 2. Finding a firm to become an apprentice 3. Most apprentices have no relevant work experience and no definite career plan. What role can a job-search assistance program specifically tailored for apprenticeship candidates play in helping youth find the relevant training opportunities? J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 20

Facilitating access to apprenticeships for disadvantaged youth in France Career planning Results: Increased likelihood (22%) that jobseekers started and continued apprenticeships Did not increase search effort, but improved returns to search effort Driven by caseworkers directing applicants to use social networks (friends and relatives) in job search Counseling services Information about local training centers and apprenticeship vacancies Help finding CV and interview workshops Crepon et al., ongoing Financial support for commuting costs J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 21

Spatial mismatch: Youth are physically disconnected from job opportunities Spatial mismatch: Information barriers Documentation barriers (migration) Financial constraints Policy Responses: Transportation subsidies Provide information about job search assistance or migration opportunities Matching and facilitation programs to match recruiters and workers Assistance and subsidies to process documents (e.g. passports) Provide cash transfers and incentives encouraging migration J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 23

Job application support and transportation subsidies in Ethiopia Many youth in congested cities trapped in informal and low-quality jobs: Often physically distant from potential employers Struggle to signal their ability to potential employers Group1: Transport subsidy 3x/week Group 2: CV, interview, certification help Comparison Group 3,000 young people in Addis Ababa, Ethiopia Results: Both interventions helped youth find better quality jobs Transport subsidy: increased search intensity and efficacy Job application workshop: increased search efficacy Interventions are cost-effective: US$19.8-35/person Abebe et al., 2017 J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 24

Facilitating temporary labor migration in Bangladesh In rural Bangladesh, pre-harvest seasonal famine is common. Program: Gave workers a cash transfer and information about job opportunities in other cities to encourage seasonal migration. Results of offering cash or credit incentive: Increased likelihood of migrating that year Average monthly household consumption increased Increased likelihood of migrating in future years without incentive (proposed mechanisms: learning by experience and connection to employers) Bryan et al. 2014 Photos: Evidence Action Bryan et al., 2014 J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 25

Firms need information too Youth lack work experience Quality of training/education institutions may be unclear Employers can t assess youths skills and productivity Employers less willing to hire youth They need both more and better information. More information about previous work (existence or quality) More information about preparation/qualifications (training, education, etc.) J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 27

Providing information on worker performance through an online marketplace Researchers randomly chose young people registered at odesk, an online job marketplace for jobs for workers all over the world who work remotely. Assess the impact of Giving jobs to relatively inexperienced workers Giving the market more information about workers job performance on future employment outcomes Pallais, 2014 J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 28

Providing information on worker performance through an online marketplace increased employment and earnings Group 1: Experimental job + basic 1-5 performance rating Group 2: Experimental job + detailed performance rating Comparison: No experimental job or rating Having a first work experience is in itself a good signal in the labor market: workers benefitted from obtaining an experimental job. Group 1: Increased employment, requested wages, and earnings especially among inexperienced workers. Group 2: Further increased employment and earnings of experienced and high-performing workers. Pallais, 2014 J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 29

Conclusion: Providing information for firms Employers value information about prior experience and make assumptions about youth productivity based on their credentials. What can youth do to signal their productivity if they lack experience or a degree/certification from a known educational/ training institution? Some examples from recent evaluations: Providing certification on applicants soft skills improved employment outcomes for youth in Uganda (Bassi & Nansambaz, 2017) Including a reference letter with the job application increased employer callbacks by 60% in South Africa, especially among women (Abel et at., 2016) J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 30

It is difficult for youth and firms to find well-suited matches Job placement and job fairs attempt to make the search process easier for both sides: Job seeker s perspective: Connect job seekers to opportunities that they may have been unaware of Provide information to candidates about how well-matched a particular job is to their skills, aspirations, and personality. Firm s perspective: Provides firms with a pool of candidates who are potentially well-matched to the positions available. May make hiring recent graduates easier, and therefore, less costly! Lower unemployment through filling existing vacancies and through inducing firms to create more vacancies as their hiring costs fall J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 32

Matching youth to jobs in Jordan A matching program in Jordan that sought to match recent university and community college graduates to job openings The program screened job candidates and firms, collecting detailed information about the job candidates and vacancies With detailed information from both sides of the labor market, carefully chosen headhunters matched firms and job candidates Credits: World Bank Groh et al., 2014 J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 33

In Jordan, matching did not lead to sustained employment 710 candidates were matched to 169 jobs 141 job interviews took place as a result of the matches 28 job candidates were hired Only 10 candidates held jobs for longer than one month. Groh et al., 2014 J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 34

Matching youth to jobs in Jordan In this context, matching did not generate new jobs or increase employment levels for educated youth. The personalized and detailed job search assistance program was costly. Qualitative data suggested that youth s expectations do not align with the types of jobs available. This mismatch seems to be the largest obstacle to entering the labor market for Jordanian youth. Providing tailored information or counseling to job seekers about the types and number of jobs available may help manage their expectations. Groh et al., 2014 J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 35

Blending search counseling with job placement in France In 2007, more than one quarter of recent college grads were out of work in France. Researchers evaluated a twostage counseling and placement program to help youth find and maintain longterm employment. Crépon et al., 2013; J-PAL Policy Briefcase, 2013 J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 36

Blending search counseling with job placement in France After 8 months, individuals in the treatment group were 2.5 percentage points more likely to have a permanent job Rates of long-term employment But gains disappeared after 12 months Crépon et al., 2013; J-PAL Policy Briefcase, 2013 J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 37

Placement or Displacement? Researchers found that the job placement program created a displacement effect, lowering employment rates for comparison group individuals living in treatment areas Positive impacts for participants do not necessarily indicate positive impacts for the whole population Crépon et al., 2013; J-PAL Policy Briefcase, 2013 J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 38

General equilibrium effects: Displacement Those who don t participate in a program could be worse off because of the program Employed Unemployed 39

I. Introduction II. Why information matters III. What works in information and matching programs IV. Case study: Job fairs in Egypt V. Conclusion

Egypt s Enterprise Development Agency MTI established ITC in 2006 ITC s mandate is to address Egypt s youth unemployment problem In 2017, ITC became a part of EDA under which a number of programs are being operated. One of which is the Job Fair Program est. 2007 Challenge of the job fair program: how can we identify ways to make the job fairs more efficient and increase job seekers participation 2015: Participating firms offered 90,000 vacancies during the job fairs, but only around 10,000 job seekers attended J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 41

Youth unemployment in Egypt 11.98% unemployment rate 2Q-2017 3.5 million Egyptians are unemployed 26.7% youth unemployment rate Puzzle in Egypt: high unemployment & firms report unfilled job vacancies Mismatch in the labor supply and demand EDA organizes job fairs to address this mismatch J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 42

But first, why do an impact evaluation with J-PAL? Job fairs program hasn t been successful year after year Learn by doing however, the net outcome of more matches did not materialize There are constraints that are hindering the job fair program We are conducting an impact evaluation on the job fair program in order to base our policies on evidence J-PAL ABDUL LATIF JAMEEL POVERTY ACTION LAB J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 43

Qualitative data to further understand the problem Focus groups with Egyptian youth In-depth interviews with private firms J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 44

6 focus groups in 3 cities with 37 youth (16M, 21F) With employed youth To gain insights from job seekers who have successfully found jobs To document the methods used To gauge job satisfaction To learn whether their perception of employment has changed With unemployed youth To document what efforts they have made To learn what structural challenges they have faced To hear the reasons that they attribute to their lack of success J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 45

Focus groups with youth: What have we learned? Discouraged from the labor market and with current job search methods Not utilizing job fairs to find jobs Lack understanding on job requirements (benefits, salary, skills, location) Lack trust in the general process of job searching Discouraged because believe that the jobs are far from their home J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 46

11 in-depth interviews with HR representatives Cairo, Alexandria and Mahallah Range from large international firms to small local firms Location varied from city center to remote location in new industrial zones What have we learned? There is an inability to find skilled employees that are right for the job General complaint that young employees lack work ethics, low productivity, and high turn-over rates The common methods for recruitment by order of preference are internal referrals, newspaper advertisements, and job fairs Youth are concerned about their reputation when applying for jobs prefer desk jobs over factory jobs Job location is a main factor in filling vacancies (example firm in Alexandria) Salaries offered are within market range plus benefits J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 47

Theory of change Pre Analysis Activities Outputs Outcomes Impacts Surveys to understand information gaps Surveys to understand the best way to communicate information to job seekers J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 48

Theory of change Pre Analysis Activities Outputs Outcomes Impacts Surveys to understand information gaps Providing different types of information to some job seekers Surveys to understand the best way to communicate information to job seekers Providing capital to cover transportation costs of job search to some job seekers J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 49

Theory of change Pre Analysis Activities Outputs Outcomes Impacts Surveys to understand information gaps Providing different types of information to some job seekers 4000 job seekers with better information about the labor market Surveys to understand the best way to communicate information to job seekers Providing capital to cover transportation costs of job search to some job seekers 3000 job seekers with money to cover transportation costs in job search J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 50

Theory of change Pre Analysis Activities Outputs Outcomes Impacts Surveys to understand information gaps Providing different types of information to some job seekers 4000 job seekers with better information about the labor market Improved information about labor market, job fairs, and decent jobs Surveys to understand the best way to communicate information to job seekers Providing capital to cover transportation costs of job search to some job seekers 3000 job seekers with money to cover transportation costs in job search Additional capacity to cover costs of job search J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 51

Theory of change Pre Analysis Activities Outputs Outcomes Impacts Surveys to understand information gaps Providing different types of information to some job seekers 4000 job seekers with better information about the labor market Improved information about labor market, job fairs, and decent jobs Increases in job fair attendance and subsequent job search and labor market activities Surveys to understand the best way to communicate information to job seekers Providing capital to cover transportation costs of job search to some job seekers 3000 job seekers with money to cover transportation costs in job search Additional capacity to cover costs of job search Improved labor market outcomes including employment, wages, retention etc. J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 52

Research Questions How can we improve the efficiency of job fairs? What are the causal impact of fair attendance on labor market perceptions and employment outcomes of job seekers? What are the effects of the different information treatments on job fair attendance and matchmaking? How do transportation costs affect job search efforts and employment related outcomes? Which job seekers are most likely to benefit from job fairs, and what strategies might improve efficient recruitment at job fairs. J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 53

The design of the impact evaluation 1 2 3 Treatment Group EDA Job fairs Participating firms Treatment Group Same information as group 1 Information on decent jobs Labor market information Comparison Group General information on macroeconomic conditions in Egypt J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 54

Evidence into Action J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 55

I. Introduction II. Why information matters III. What works in information and matching programs IV. Case study: Job fairs in Egypt V. Conclusion

What do we know so far? Information dissemination and job search services: Providing targeted information about labor market opportunities can be a cost-effective way to help youth adjust their expectations, prepare for, and find jobs. Counseling increases the efficiency of youth s job search by guiding their search approach and helping them communicate their qualifications to potential employers. Reducing spatial barriers: Transportation subsidies help increase search intensity and the likelihood of finding a job by reducing job search costs. Information for firms: Providing employers with more and better information about youths skills, traits, and qualifications may increase their willingness to hire inexperienced workers. J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 57

What do we know so far Placement services: Job matching and placement programs can work in the very short run, but effects seem to fade over time. However, they tend to be expensive and difficult to implement. Displacement: If information and matching programs do not increase demand for workers, these programs can displace non-participants. If we do not take into consideration displacement, we could be overstating the overall impact of the program on the population. Disadvantaged youth: Information and matching programs can especially help disadvantaged youth, who are more likely to experience spatial, information, and social barriers. J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 58

But, we have a long way to go We are still trying to understand: Which programs can help unemployed youth find jobs that match their skills and aspirations? Which services, such as training, providing information, search counseling, or transportation subsidies, are most effective? How can youth employment programs better identify and target youth who are likely to benefit from these programs? How can youth be informed about which options are best for them? How can training and financial services for entrepreneurs be adapted to meet the needs and constraints of young people? Can ability testing and credential systems lead to better matches between workers and jobs? Across all programs, what components can be introduced or reinforced to ensure men and women both benefit? Which programs increase firms desire to hire youth? Can helping youth navigate the transition to the labor force improve other aspects of their wellbeing, such as psychological and emotional well-being, health, and participation in criminal activities? J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 59

Questions? Lisa: lcorsetto@povertyactionlab.org Nour: nshammout@povertyactionlab.org Rania: rsadek@itcegypt.eg J-PAL FINDING THE (BEST) FIT: WHAT WORKS IN INFORMATION AND MATCHING PROGRAMS 60