Advising Job Seekers in Occupations with Poor Prospects: A Field Experiment

We study the impact of online information provision to unemployed job seekers who are looking for work in occupations in slack markets, i.e. with only few vacancies per job seeker. Job seekers received suggestions about suitable alternative occupations, and how the prospects of these alternatives compare to their current occupation of interest. Some additionally received a link to a motivational video. We evaluate the interventions using a randomized field experiment covering all eligible job seekers registered to search in the
target occupations. The vast majority of treated job seekers open the message revealing the alternative suggestions. The motivational video is rarely watched. Effects on unemployed job seekers in structurally poor labor markets are large: their employment, hours of work and labor income all improve by 5% to 6% after 18 months. Additional survey evidence shows that treated job seekers find employment in more diverse occupations.