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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.

Suggested Citation

  • Ghani, Ejaz & Kerr, William R. & Stanton, Christopher, 2013. "Diasporas and outsourcing : evidence from oDesk and India," Policy Research Working Paper Series 6403, The World Bank.
  • Handle: RePEc:wbk:wbrwps:6403
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    Cited by:

    1. Stanton, Christopher & Thomas, Catherine, 2016. "Landing the first job: the value of intermediaries in online hiring," LSE Research Online Documents on Economics 65160, London School of Economics and Political Science, LSE Library.
    2. Sari Pekkala Kerr & William R. Kerr & William F. Lincoln, 2015. "Firms and the Economics of Skilled Immigration," Innovation Policy and the Economy, University of Chicago Press, vol. 15(1), pages 115-152.
    3. Sari Pekkala Kerr & William R. Kerr, 2015. "Global Collaborative Patents," NBER Working Papers 21735, National Bureau of Economic Research, Inc.
    4. Christopher Stanton, 2015. "Comment on "Digitization and the Contract Labor Market: A Research Agenda"," NBER Chapters,in: Economic Analysis of the Digital Economy, pages 250-255 National Bureau of Economic Research, Inc.
    5. repec:anr:reveco:v:9:y:2017:p:201-234 is not listed on IDEAS
    6. Sari Pekkala Kerr & William Kerr & Çağlar Özden & Christopher Parsons, 2017. "High-Skilled Migration and Agglomeration," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 201-234, September.
    7. William R. Kerr, 2013. "U.S. High-Skilled Immigration, Innovation, and Entrepreneurship: Empirical Approaches and Evidence," NBER Working Papers 19377, National Bureau of Economic Research, Inc.
    8. Chen Liang & Yili Hong & Bin Gu, 2017. "Home Bias in Global Employment," Working Papers 17-06, NET Institute.
    9. Christopher Stanton & Catherine Thomas, 2014. "Landing The First Job: The Value of Intermediaries in Online Hiring," CEP Discussion Papers dp1316, Centre for Economic Performance, LSE.
    10. Agrawal, Ajay & Lacetera, Nicola & Lyons, Elizabeth, 2016. "Does standardized information in online markets disproportionately benefit job applicants from less developed countries?," Journal of International Economics, Elsevier, vol. 103(C), pages 1-12.
    11. Ghani,Syed Ejaz & Grover,Arti & Kerr,Sari & Kerr,William Robert, 2016. "Will market competition trump gender discrimination in India ?," Policy Research Working Paper Series 7814, The World Bank.
    12. Michael Luca, 2017. "Designing Online Marketplaces: Trust and Reputation Mechanisms," Innovation Policy and the Economy, University of Chicago Press, vol. 17(1), pages 77-93.
    13. Ajay Agrawal & John Horton & Nicola Lacetera & Elizabeth Lyons, 2015. "Digitization and the Contract Labor Market: A Research Agenda," NBER Chapters,in: Economic Analysis of the Digital Economy, pages 219-250 National Bureau of Economic Research, Inc.
    14. Edward P. Lazear & Kathryn L. Shaw & Christopher T. Stanton, 2016. "Who Gets Hired? The Importance of Finding an Open Slot," NBER Working Papers 22202, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

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

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services
    • M55 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Contracting Devices

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