Local externalities in labor markets: congestion and information flow among peers
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.
Cite this publication
Belongs to collection
Homeownership is promoted by the majority of OECD member countries. Nevertheless, the impact that owning a house can have on employment levels is not ...