JEL classification codes: I3, J2
Information, though often costly or incomplete in reality, is central to the functioning of markets (e.g., Stigler 1961). Economists have long emphasized that improvements in information have the power to impact market performance and welfare, particularly in developing settings where informational problems are seen as key barriers for growth and development (e.g., Aker 2010). Labor market transactions are not an exception as they are characterized by high levels of mismatch, coordination problems, and asymmetric information affecting workers and firms alike (e.g., Autor 2001). Yet, traditional labor-market intermediaries (LMIs), such as public employment offices and temporary help agencies, which aim to reduce search costs and adverse selection problems, remain understudied in both developed and developing settings (Autor 2009).
