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Giving It Away for Free? The Nature of Job-Market Signaling by Open-Source Software Developers

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  • Hakim Orman Wafa

    (Baylor University)

Abstract

Much work has been done in recent times to answer the question of why people contribute, and continue to contribute to open-source and free software, despite the lack of immediate financial gain in most cases. Lerner and Tirole (2002) hypothesize that open-source contributions act as a form of job-market signaling - they permit prospective employers to judge a person's ability directly. This paper tests the nature of this signaling using a complementarity framework. Do developers use open source software as a way to enhance the signal from a college education, or to substitute for it, in a form of learning by doing? I find evidence that they are complements, while conclusively rejecting the idea that they are substitutes.

Suggested Citation

  • 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.
    • Handle: RePEc:bpj:bejeap:v:8:y:2008:i:1:n:12
    DOI: 10.2202/1935-1682.1875
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    Cited by:

    1. Juergen Bitzer & Ingo Geishecker & Philipp Schroeder, 2010. "Returns to Open Source Software Engagement: An Empirical Test of the Signaling Hypothesis," Working Papers V-321-10, University of Oldenburg, Department of Economics, revised Jan 2010.

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