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Returns to Open Source Software Engagement: An Empirical Test of the Signaling Hypothesis

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Author Info

  • Juergen Bitzer

    ()
    (Department of Economics, University of Oldenburg)

  • Ingo Geishecker

    ()
    (Department of Economics, University of Goettingen)

  • Philipp Schroeder

    ()
    (Aarhus School of Business, Aarhus University, Denmark)

Abstract

Job-Market signaling is ranked high among the explanations why in- dividuals engage voluntarily in OSS projects. If true, signaling implies the existence of a wage premium for OSS engagement. However, due to a lack of data this issue has not been tested previously. Based on a novel data set comprising detailed demographic and wage information for some 7,000 German IT employees, this paper fills this gap. In the empirical analysis, however, we find no support for the signaling hypoth- esis, a result that is robust to different measures of OSS involvement and different model specifications.

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Bibliographic Info

Paper provided by University of Oldenburg, Department of Economics in its series Working Papers with number V-321-10.

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Length: 33 pages
Date of creation: Jan 2010
Date of revision: Jan 2010
Publication status: Published in Oldenburg Working Papers, V-321-10
Handle: RePEc:old:dpaper:321

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Related research

Keywords: open source software; signaling; wage differentials;

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References

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  1. Arnaud Chevalier & Colm Harmon & Ian Walker & Yu Zhu, 2004. "Does Education Raise Productivity, or Just Reflect it?," Economic Journal, Royal Economic Society, vol. 114(499), pages F499-F517, November.
  2. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, octubre-d.
  3. Bitzer, Jürgen & Schrettl, Wolfram & Schröder, Philipp J. H., 2004. "Intrinsic motivation in open source software development," Discussion Papers 2004/19, Free University Berlin, School of Business & Economics.
  4. Michael Spence, 2002. "Signaling in Retrospect and the Informational Structure of Markets," American Economic Review, American Economic Association, vol. 92(3), pages 434-459, June.
  5. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2002. "Instrumental variables and GMM: Estimation and testing," Boston College Working Papers in Economics 545, Boston College Department of Economics, revised 14 Feb 2003.
  6. Spence, A Michael, 1973. "Job Market Signaling," The Quarterly Journal of Economics, MIT Press, vol. 87(3), pages 355-74, August.
  7. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
  8. Justin Pappas Johnson, 2002. "Open Source Software: Private Provision of a Public Good," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 11(4), pages 637-662, December.
  9. Andrew Weiss, 1995. "Human Capital vs. Signalling Explanations of Wages," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 133-154, Fall.
  10. David P. Myatt & Chris Wallace, 2002. "Equilibrium Selection and Public-good Provision: The Development of Open-source Software," Oxford Review of Economic Policy, Oxford University Press, vol. 18(4), pages 446-461.
  11. Hakim Orman Wafa, 2008. "Giving It Away for Free? The Nature of Job-Market Signaling by Open-Source Software Developers," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-33, June.
  12. Schmidt, Christoph M & Zimmermann, Klaus F, 1991. "Work Characteristics, Firm Size and Wages," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 705-10, November.
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