DP16546 Screening and Signaling Non-Cognitive Skills: Experimental Evidence from Uganda

Author(s): Vittorio Bassi, Aisha Nansamba
Publication Date: September 2021
Keyword(s):
JEL(s): J24, M51, O12
Programme Areas: Labour Economics, Development Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=16546

We study how employers and job-seekers respond to credible information on skills that are difficult to observe, and how this affects matching in the labor market. We experimentally vary whether certificates on workers' non-cognitive skills are disclosed to both sides of the market during job interviews between young workers and small firms in Uganda. The certificates cause workers to increase their labor market expectations, while high-ability managers revise their assessments of the workers' skills upwards. The reaction in terms of beliefs leads to an increase in positive assortative matching and to higher earnings for workers, conditional on employment.