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Diasporas and outsourcing : evidence from oDesk and India

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  • Ghani, Ejaz
  • Kerr, William R.
  • Stanton, Christopher

Abstract

This paper examines the role of the Indian diaspora in the outsourcing of work to India. The data are taken from oDesk, the world's largest online platform for outsourced contracts. Despite oDesk minimizing many of the frictions that diaspora connections have traditionally overcome, diaspora connections still matter on oDesk, with ethnic Indians substantially more likely to choose a worker in India. This higher placement is the result of a greater likelihood of choosing India for the initial contract, due in large part to taste-based preferences, and substantial path dependence in location choices. The paper further examines wage and performance outcomes of outsourcing as a function of ethnic connections.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6403.

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Date of creation: 01 Apr 2013
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Handle: RePEc:wbk:wbrwps:6403

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Keywords: Debt Markets; E-Business; Labor Policies; Labor Markets; Technology Industry;

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Citations

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Cited by:
  1. Sari Pekkala Kerr & William R. Kerr & William F. Lincoln, 2014. "Firms and the Economics of Skilled Immigration," NBER Working Papers 20069, National Bureau of Economic Research, Inc.
  2. Ajay Agrawal & John Horton & Nicola Lacetera & Elizabeth Lyons, 2013. "Digitization and the Contract Labor Market: A Research Agenda," NBER Chapters, in: Economics of Digitization National Bureau of Economic Research, Inc.
  3. Christopher Stanton, 2013. "Comment on "Digitization and the Contract Labor Market: A Research Agenda"," NBER Chapters, in: Economics of Digitization National Bureau of Economic Research, Inc.
  4. William R. Kerr, 2014. "U.S. High-Skilled Immigration, Innovation, and Entrepreneurship: Empirical Approaches and Evidence," WIPO Economic Research Working Papers 16, World Intellectual Property Organization - Economics and Statistics Division.

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