How do beliefs and preferences over jobs affect enrollment in vocational training: Experimental evidence from India

We survey young job seekers in rural India to understand the determinants of enrollment in a government training program with guaranteed placement into urban jobs. Respondents are over-optimistic: they expect jobs that pay more and are closer to home than actual placement opportunities. We implement an RCT and provide them with objective information on the distribution of placement salaries or job locations. The intervention successfully corrects subjects’ beliefs, which affects their decision to enroll in the program. By revealed preferences, our estimates suggest that job seekers need to be paid 50% more to work outside their home state.