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Information in online labour markets

Author

Listed:
  • Pelletier, Adeline
  • Thomas, Catherine

Abstract

Online labour markets are virtual platforms that solve information problems to enable gains from trade in remote labour services. They make employers and workers aware of each other, and allow them to communicate, contract, and produce remotely. Recent research suggests, however, that organizing production to include remote work remains challenging because employers and workers in these markets continue to lack information that is less easily communicated. Employers appear unable to accurately anticipate the full costs and benefits to them of using the market prior to entry, and continue to have difficulty evaluating worker applications even when experienced in these markets. Information is particularly incomplete when wage arbitrage opportunity is greatest.

Suggested Citation

  • Pelletier, Adeline & Thomas, Catherine, 2018. "Information in online labour markets," LSE Research Online Documents on Economics 90012, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:90012
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    File URL: http://eprints.lse.ac.uk/90012/
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    References listed on IDEAS

    as
    1. Maarten Goos & Alan Manning & Anna Salomons, 2014. "Explaining Job Polarization: Routine-Biased Technological Change and Offshoring," American Economic Review, American Economic Association, vol. 104(8), pages 2509-2526, August.
    2. Chen, Daniel L. & Horton, John J., 2016. "Are Online Labor Markets Spot Markets for Tasks?: A Field Experiment on the Behavioral Response to Wage Cuts," IAST Working Papers 16-37, Institute for Advanced Study in Toulouse (IAST).
    3. Agrawal, Ajay & Lacetera, Nicola & Lyons, Elizabeth, 2016. "Does standardized information in online markets disproportionately benefit job applicants from less developed countries?," Journal of International Economics, Elsevier, vol. 103(C), pages 1-12.
    4. Alan S. Blinder & Alan B. Krueger, 2013. "Alternative Measures of Offshorability: A Survey Approach," Journal of Labor Economics, University of Chicago Press, vol. 31(S1), pages 97-128.
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    Cited by:

    1. Enghin Atalay & sarada sarada, 2019. "Emerging and Disappearing Work, Thriving and Declining Firms," 2019 Meeting Papers 484, Society for Economic Dynamics.
    2. Bayrak, Halil İbrahim & Dalkıran, Nuh Aygün, 2022. "Nonexclusive competition for a freelancer under adverse selection," Journal of Mathematical Economics, Elsevier, vol. 103(C).
    3. Kazakova, E. & Sandomirskaia, M. & Suvorov, A. & Khazhgerieva, A. & Shavshin, R., 2023. "Platforms, online labor markets, and crowdsourcing. Part 1. Traditional online labor market," Journal of the New Economic Association, New Economic Association, vol. 60(3), pages 120-148.
    4. Adams-Prassl, Abigail, 2020. "The Gender Wage Gap on an Online Labour Market: The Cost of Interruptions," CEPR Discussion Papers 14294, C.E.P.R. Discussion Papers.
    5. Iwona Zareba & Anna Cierniak-Emerych, 2021. "Remote Work during the Covid-19 Pandemic in Organizations with a High Level of Interpersonal Interactions," European Research Studies Journal, European Research Studies Journal, vol. 0(4B), pages 668-685.

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    More about this item

    Keywords

    services trade; trade in tasks; ICT; labour markets; information frictions;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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