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  • How do digital platforms af...
    Kelley, Erin M.; Ksoll, Christopher; Magruder, Jeremy

    Journal of development economics, January 2024, 2024-01-00, Letnik: 166
    Journal Article

    We use a randomized control trial to evaluate whether digital platforms improve employment outcomes among vocational training graduates in India. We uploaded a random subset of graduates to a digital platform, and assigned some to receive many text messages about job opportunities. We find evidence of voluntary unemployment: graduates respond to platform access by increasing their reservation wages, and by working significantly less. As good job offers fail to materialize on the platform, some graduates adjust their expectations downwards and resume working. These findings suggest that youth’s beliefs about the effectiveness of matching interventions may reduce their potential impacts on employment. •Being uploaded to a digital platform reduces graduates’ probability of employment.•We interpret this result as strong evidence for voluntary unemployment.•Receiving more information from the platform helps recalibrate expectations.