Local externalities in labor markets: congestion and information flow among peers
Abstract
We explore local externalities in labor markets, exploiting the random assignment of a large-scale internship program in Argentina. Examining the probability of registered employment in the 12 months after the program, we find that applicants are affected by two opposing external effects: those whose closest applicant received the internship have an employment rate 1.8 percentage points higher than the neighbors of non-beneficiary applicants, while those who face the top decile of program saturation in their neighborhood show an employment rate 2.98 percentage points lower than those in the first decile.
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Date
2020-12-16Cite this publication
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