Search costs and the determinants of job search

Abstract This paper examines how individuals select into job search in terms of their individual qualifications and perceptions measures recruiting additional applicants with a modest job-search subsidy affects selection. I use experimental evidence to examine individuals’ decisions attend participate fair. Thirteen percent invited but unsubsidized respondents the fair, they are positively selected from overall distribution respondents. While attracts those who less qualified confident ability find work abroad, least do not intensively. Although does lead any offers, it induces high degree uncertainty about likelihood job-finding apply recruitment agencies. These results demonstrate importance imperfect information returns highlight reducing costs can increase effort among most uncertain prospects.