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Platforms, online labor markets, and crowdsourcing. Part 1. Traditional online labor market

Author

Listed:
  • Kazakova, E.

    (HSE University, Moscow, Russia)

  • Sandomirskaia, M.

    (HSE University, Moscow, Russia)

  • Suvorov, A.

    (HSE University, Moscow, Russia)

  • Khazhgerieva, A.

    (HSE University, Moscow, Russia)

  • Shavshin, R.

    (HSE University, Moscow, Russia)

Abstract

In this survey, we overview recent theoretical and empirical studies on online labor platforms and provide real life examples on how these markets function in Russia and worldwide. We discuss ways to classify online labor platforms. We concentrate on respective distinctive features of different categories of online and platforms and, due to their structural differences, justify the need for differential approach to such markets research and regulation. Online labor platforms have dual nature. On the one hand, such markets can be regarded as two-sided platforms. Therefore, one part of the survey discusses network effects, optimal pricing strategies (both at the deal and platform level), and matching. On the other hand, online labor platforms inherit specific features of traditional labor market. Accordingly, our study highlights the labor market perspective: discrimination, worker rights protection, information asymmetry, and the mechanisms to avoid it, here including reputation, among the examples. Our study highlights legal and economic features of online labor platforms that should be taken into account when designing related competition and regulation policy. Moreover, the study can benefit workers and employers in the online labor markets that look at maximizing their respective surpluses from using a platform.

Suggested Citation

  • Kazakova, E. & Sandomirskaia, M. & Suvorov, A. & Khazhgerieva, A. & Shavshin, R., 2023. "Platforms, online labor markets, and crowdsourcing. Part 1. Traditional online labor market," Journal of the New Economic Association, New Economic Association, vol. 60(3), pages 120-148.
    • Handle: RePEc:nea:journl:y:2023:i:60:p:120-148
    DOI: 10.31737/22212264_2023_3_120-148
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    More about this item

    Keywords

    online platforms; labor market;

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J49 - Labor and Demographic Economics - - Particular Labor Markets - - - Other
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L17 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Open Source Products and Markets
    • D29 - Microeconomics - - Production and Organizations - - - Other

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