Integrating Mobile Phone Technologies into Labor-Market Intermediation: A Multi-Treatment Experimental Design

Abstract

This study investigates the causal impacts of integrating mobile phone technologies into traditional public labor-market intermediation services on employment outcomes. By providing faster, cheaper and up-to-date information on job vacancies via SMS, mobile phone technologies might affect the rate at which offers arrive as well as the probability of receiving a job offer. We implement a social experiment with multiple treatments that allows us to investigate both the role of information channels (digital versus non-digital) and information sets (restricted [public] versus unrestricted [public/private]).The results show positive and significant short-term effects on employment for public labor-market intermediation. While the impacts from traditional labor-market intermediation are not large enough to be statistically significant, the unrestricted digital treatment group shows statistically significant short-term employment effects. As for potential matching efficiency gains, the results suggest no statistically significant effects associated with either information channels or information sets.

Keywords: mobile phones, labor-market intermediation, ICT, field experiments, Peru

JEL Classification: I3, J2