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