Heller, Sara B.

Information Frictions and Skill Signaling in the Youth Labor Market - American Economic Journal: Economic Policy 2024 - 01-33

This paper provides evidence that information frictions limit the labor market trajectories of US youth. We provide credible skill signals-recommendation letters based on supervisor feedback-to a random subset of 43,409 participants in New York's summer jobs program. Letters increase employment the following year by 3 percentage points (4.5 percent). Earnings effects grow over four years to a cumulative

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Child Care
Labor Productivity
Mechanism Design
Public Pensions
Wage Differentials
Human Capital