Experimental Design
The objectives of this experiment are as follows:
Measure the impact of regular recommendations sent by email: We plan to send a weekly email to job seekers offering them the top 10 jobs currently available based on various criteria: 5 will be the best jobs overall, and 5 will be selected from jobs not recommended in previous mailings. This mailing will take place over a long period of time.
Measure the impact of congestion on the exposure of specific job seekers: Examining recommendations based on past data reveals several points. First, in the absence of recommendations, labor markets are congested: a small number of vacancies concentrate the majority of applications. The introduction of algorithmic recommendations may exacerbate this congestion. Thus, some of the potential gains associated with recommending jobs where jobseekers have the best chance of being hired are eliminated by intensifying competition among jobseekers. We therefore want to use a design that allows us to measure the magnitude of this congestion effect and the intensity with which it reduces the pure effect of recommendations.
The experiment is carried out with jobseekers of categories A, B and C. Category A corresponds to jobseekers who are required to carry out positive acts of job search and who have been unemployed during the month. Category B (or C) includes people who: 1) are registered with France Travail, 2) have had a reduced activity of up to (or more than) 78 hours during the last month, and 3) are looking for a CDI (indefinite duration contract), CDD (short-term contract), seasonal or temporary job.
The experiment uses double randomization. The experiment will be conducted at the regional level in Auvergne Rhône Alpes (ARA). The experimental design uses double randomization. First, micro markets are randomly assigned to one of the 4 possible types m. Micro markets of type m=0 serve as a control group. Then, micro markets m=1,2 will receive recommendations from the VADORE recommendation algorithm with two different exposure levels: low (25%) and high (90%). Jobseekers in micro-markets m4 will receive recommendations generated by the SDR with a low exposure rate (25%).
For each micro market, job seekers who will receive vacancies through these systems will be randomly selected according to the planned exposure proportions (25% or 90%).
Building micro markets. Elementary micro-markets are created by crossing occupations, classified according to the ROME (Répertoire opérationnel des métiers et des emplois) nomenclature (114 categories), with employment areas defined by the BMO (Besoins en Main-d’Oeuvre) nomenclature, which distinguishes 80 such areas within the Auvergne-Rhône-Alpes (ARA) region. These micro-markets are then aggregated based on a similarity matrix, constructed from recommendations on the full sample of job seekers one year before randomization and the flow of application to FT vacancies over one year as well. The similarity matrix is obtained from the application data for all job seekers in the previous year. To build this matrix, we compute the matrix P of the share in all applications made by the full set of jobseekers for (respectively to) jobs in micromarket j made to (respectively by) job seekers registered as searching in micro market i. The similarity matrix we consider is then PP’, as it describes the competition job-seekers from a micro-market i face on all micro-markets from job-seekers from micro-market j. Aggregation will be performed so as to minimize the flow of applications or recommendations outside a micro market. This means that, ideally, each micro market would operate autonomously, so that interactions are within a micro market and not between micro markets. There are 5400 elementary micro markets turned to a number of 3060 aggregated micro markets.
Quadruplets of micro markets. Once the micro markets are constituted, they will be assigned to 765 quadruplets. This assignment is done so as to minimize the sum of the differences within a quadruplet of micro market level variables: 1) the number of jobseekers registered in the micro market a month before the start of the experiment, 2) the number of potential competitors job seekers in this market are facing, 3) the share of jobseekers with at least one application to a vacancy posted at FT, 4) the number of posted vacancies for jobs in the micro market (one month before the start of the experiment) 4) the average VADORE score of recommendations made to jobseekers registered in the micro market, 5) the share of women registered in the micro market and 6) the share of Category A jobseekers registered in the micro market. To compute the distance we use a Mahalanobis distance penalized to give less weight to differences regarding gender and category A jobseekers.
Assignment of micro markets: Once the quadruplets are built we randomly assign within each quadruplet one micromarket to each of the possible assignments (control, Vadore Low, Vadore High, Sdr Low). This assignment of micro markets is final and is done before the start of the experiment.
Selection of job seekers and random assignments. All category A, B and C of job seekers residing in the ARA region, having a contractualized Offre Raisonnable d’Emploi (i.e. the parameters of the job search have been registered and validated during a meeting with a dedicated caseworker), having consented to receive emails from France Travail, and aged over 18 will be included in the experiment. Two populations are distinguished:
"Stock" population: it includes category A, B and C job seekers aged 18 or over and registered with France Travail the week before the start of the experiment. These job seekers are part of a micro market "m". If in this micromarket a non-zero proportion is assigned to receive recommendations with an assignment probability. They are then randomly assigned to receive recommendations specific to their micromarket (Vadore: m = 1, 2; SDR: m = 3) according to this probability. Exactly a proportion of these job seekers registered at the time of the experiment's launch will be drawn to be assigned to the corresponding treatment. The assignment is stratified by gender and by Category A versus (B and C) status.
"Flow" population: It includes category A, B and C job seekers aged 18 or over registered with France Travail since the launch of the experiment. Their date of inclusion in the experiment coincides with the date of their meeting with a dedicated caseworker to define the ORE. The assignment is also stratified by gender and category A status. For this purpose, in each treated micro-market there are 4 assignment lists, one for each modality of crossing of the gender and category characteristics. These assignment lists are a stack of quadruplets containing three Cs and one T for m=1 or 3, and one C and three Ts for m=2, randomly arranged. When a jobseeker enters the experiment, he or she is assigned a micro-market and a type, which are linked to the jobseeker's gender and status characteristics. We then consider the rank of his registration time among the jobseekers of his type registered in his micro-market. The observation of the same rank in the assignment list of his type defines his status in terms of treatment.
The important dimensions of heterogeneity that we will examine are related to both market characteristics:
- The proportion of jobseekers with at least one application for a vacancy submitted to the PES;
- Market tightness
- Quality of Vadore recommendations.
And jobseekers characteristics:
- gender,
- JS registered under the status of categories.