How can we support workers in their search for quality jobs?

In Brazil and other Latin American countries, informal job search mechanisms are the norm. Public employment systems are hardly used by candidates, and there are many potential barriers to accessing jobs hat require higher qualifications and offer better pay.

Some of the challenges faced by job seekers include geographic and financial constraints, lack of information about the job market, difficulties in communicating their skills, and behavioral biases. Given this context, what policies can help them find quality jobs?

Programs aimed at overcoming these barriers can point the way forward. Some of them are included in the publication on job search assistance, which is part of the series “Evidence on Labor Market Policies and Implications for Brazil,” a partnership between JOI Brazil—J-PAL LAC’s Jobs and Opportunities Initiative—and the Inter-American Development Bank (IDB). 

Comprising six volumes, the series highlights the most relevant results from the literature on the labor market. The goal is to gather robust evidence on policies that seek to respond to the most urgent challenges in the labor market and to enrich the debate based on the broad dissemination of knowledge to governments, the private sector, NGOs, and society in general.

Job search assistance programs: what works?

What are the characteristics of successful programs? Based on an in-depth analysis, the publication identified promising actions to improve job searches such as reducing barriers (financial, geographic, stigmas, and others) to accessing job vacancies, providing information on search tools, and improving the way skills are reported on resumes. Another positive point in this process is incentivizing job search efforts, both on the part of employers (for example, hiring recruitment and selection companies to search for professionals) and candidates (for example, payout of unemployment insurance conditional on proof of job applications).

Some inspiration comes from Ethiopia, South Africa, and Jordan. These countries have implemented cash transfer and transportation subsidy programs as a way to eliminate geographic and financial barriers for job seekers. Overall, the survey conducted by the publication indicated that these interventions were able to increase the effort in job searches and allow the search to be carried out in regions further away from home. As a result, candidates also increased their understanding of the job market and found higher quality jobs.

The publication also analyzes specific evidence from programs in Latin America and the Caribbean. In Peru, an intervention carried out by researchers in partnership with the public employment system found that the use of technological services, such as sending information about vacancies via text messages, generated positive impacts on people's employability and income.

Gender and racial disparities in public policy design

Based on identified characteristics, the publication draws a parallel with the labor market in Brazil as a way of uncovering what can be adapted to improve the efficiency of employment policies in the country. An important point in this process is to analyze specific difficulties faced by those seeking employment in the Brazilian context, especially gender and racial inequalities.

According to data from the Brazilian National Household Sample Survey, the unemployment rate among women was 53.3% higher than that of men in 2023. And, among black and mixed-race people, unemployment was 44% higher than among the white population. Several studies show that women and black people face discrimination and have difficulty communicating their skills when looking for work. These are barriers that need to be taken into account when formulating support policies. Providing reference letters, for example, can have a positive impact on the employability of people who are part of these groups.

The publication also analyzes the impact of the use of algorithms in the selection process in terms of diversity. There is evidence that this technology can replicate discriminatory patterns, reducing the number of female candidates and black and brown people. On the other hand, there are also studies showing that it is possible to calibrate algorithms so that they can promote diversity of candidates in the hiring process. Therefore, it is crucial to ensure that firms using algorithms in the job search take into account the potential discriminatory bias when adopting this technology.  

Generating relevant contributions to public debate

Learning from available evidence is one of the ways to build more efficient public policies. The main objective of the series of publications is to disseminate the scientific knowledge generated in recent years in an accessible and objective language for all interested people.

In addition to the series, the JOI Brazil initiative also finances impact assessments of existing programs. The lessons from the previous evaluations alongside active efforts to fund more knowledge are essential to transform the labor market, create more job opportunities, and reduce poverty and inequality. 

Take a look at the previous publications in this series on job training programs and on microcredit. The next editions will provide further insights on promising public policies for improving people's lives and will cover the future of employment and new technologies, training in entrepreneurship, and informality.