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Asymmetric Information on Noncognitive Skills in the Indian Labor Market: An Experiment in Online Job Portal

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Date
2018-03
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Published
2018-03
Author(s)
Imaizumi, Saori
Areias, Ana
Chowdhury, Afra
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Abstract
This paper examines the impact of noncognitive (socio-emotional) skills on job market outcomes, using a randomized control trial implemented in an online job portal in India. Job seekers who registered in the portal were asked to take a Big-Five type personality test and, for a random subsample of the test takers, the results were displayed to potential employers. The outcomes are measured by whether a potential employer shortlisted a job seeker by opening (unlocking) his/her application and background information. The results show that the treatment group for whom test results were shown generally enjoyed a higher probability of unlock. That is, employers are more interested in those for whom they can see personality test results. Such a relationship was not seen in the pre-test period, which confirms that the results are unlikely to be spurious. The study also finds a significant impact among organized, calm, imaginative, and/or quiet applicants (no effect is detected among easy-going, sensitive, realistic, and/or outgoing applicants), which seems to display employers' preference.
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Imaizumi, Saori; Yamauchi, Futoshi; Areias, Ana; Nomura, Shinsaku; Chowdhury, Afra. 2018. Asymmetric Information on Noncognitive Skills in the Indian Labor Market: An Experiment in Online Job Portal. Policy Research Working Paper;No. 8378. © World Bank. http://hdl.handle.net/10986/29558 License: CC BY 3.0 IGO.
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