Search Frictions in the Labor Market: The Effect of an Inclusive Job Matching Platform

Study Context

Job search costs in low-income countries, particularly in sub-Saharan Africa, can consume a significant portion of jobseekers’ resources, whereas firms face high screening costs in finding suitable candidates. Existing job-matching platforms often cater to educated jobseekers who seek white-collar jobs, operating on the assumption that they have internet access and are technology savvy. This excludes many young jobseekers in a different segment of the labor market with limited access to internet and digital skills – adversely affecting marginalized groups and deepening existing inequalities in accessing labor market opportunities. 

Researchers will pilot and evaluate an innovative Text4Jobs platform, designed to be inclusive and enable job seekers to receive real-time job matches tailored to their preferences, while also addressing employers’ challenges of finding suitable candidates. In the platform, job seekers input their preferences (e.g. location, salary, and job type), and employers provide details about vacancies. An algorithm matches jobseekers with vacancies and alerts both via text notifications.

The study will assess the effectiveness of the platform in reducing job search costs, improving job matching efficiency, and increasing employment outcomes for jobseekers.

Study Design

Researchers are implementing a randomized control trial in Accra, Ghana, targeting job seekers and firms. 300 job seekers will be randomly assigned into one of three groups: 1) a group receiving job match notifications via text messages; 2) a group receiving text message notifications and bi-weekly reminders to apply for jobs; or 3) a group receiving no intervention. Moreover, qualitative data from interviews with jobseekers and firms will be used to refine the platform’s features and adapt future interventions.

Results and Policy Lessons 

Results forthcoming.