Hiring and Learning in Online Global Labor Markets
AbstractThis paper uses data from the online employer-freelancer matching platform freelancer.com to study the determinants of a match between an employer and a freelancer. Having to rely on a relatively small number of characteristics, employers use the freelancer's country of origin and reputation scores to infer the expected service quality. I find that freelancers from developing countries are less likely to be hired when they have no individual reputation, and as individual reputation becomes better this country effect disappears. This setting also allows me to study how employers' experience in past hires affects their behavior in current hires. I show that following a good match with a freelancer, employers are more likely to hire freelancers from the good match's country. I discuss how these findings contribute to our understanding of matching, learning, and discrimination in online settings.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by NET Institute in its series Working Papers with number 11-17.
Length: 35 pages
Date of creation: Sep 2011
Date of revision: Oct 2011
Contact details of provider:
Web page: http://www.NETinst.org/
International outsourcing; Online labor market; Information acquisition; Quality reputations; Country-of-origin effect; Statistical discrimination;
Find related papers by JEL classification:
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- F15 - International Economics - - Trade - - - Economic Integration
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
- L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chisik, Richard, 2003.
"Export industry policy and reputational comparative advantage,"
Journal of International Economics,
Elsevier, vol. 59(2), pages 423-451, March.
- Richard Chisik, 2010. "Export Industry Policy and Reputational Comparative Advantage," Working Papers 017, Ryerson University, Department of Economics.
- John List, 2004.
"The nature and extent of discrimination in the marketplace: Evidence from the field,"
Natural Field Experiments
00299, The Field Experiments Website.
- John A. List, 2004. "The Nature and Extent of Discrimination in the Marketplace: Evidence from the Field," The Quarterly Journal of Economics, MIT Press, vol. 119(1), pages 49-89, February.
- Ajay Agrawal & John Horton & Nico Lacetera & Elizabeth Lyons, 2013.
"Digitization and the Contract Labor Market: A Research Agenda,"
in: Economics of Digitization
National Bureau of Economic Research, Inc.
- Ajay Agrawal & John Horton & Nicola Lacetera & Elizabeth Lyons, 2013. "Digitization and the Contract Labor Market: A Research Agenda," NBER Working Papers 19525, National Bureau of Economic Research, Inc.
- Kevin Yili Hong & Alex Chong Wang & Paul A. Pavlou, 2013. "How does Bid Visibility Matter in Buyer-Determined Auctions? Comparing Open and Sealed Bid Auctions in Online Labor Markets," Working Papers 13-05, NET Institute.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nicholas Economides).
If references are entirely missing, you can add them using this form.