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.
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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
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