Information asymmetries can prevent markets from operating efficiently. An important example is the labor market, where employers face uncertainty about the productivity of job candidates. We examine theoretically and with laboratory experiments three key questions related to hiring via...

This paper empirically tests the role of search frictions in driving qualification mismatches in the labor market. Using new data from several low-income economies in urban Asia we find that overeducation in less developed labor markets are more pervasive than in more developed economies....